CAF-2 · Chapter 5 · Question 4 of 10
A company provided a leased 1300cc car to its marketing manager for both official and private use. The fair market value of the car at the commencement of the lease was Rs. 3,000,000. What amount will be included in the manager's taxable salary for this perquisite?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Rs. 150,000
Explanation
For a leased vehicle used partly for personal and partly for official use, 5% of the fair market value (FMV) of the motor vehicle at the commencement of the lease is added to the salary (5% of 3,000,000 = Rs. 150,000).
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