Vehicle · perquisite
Fuel and maintenance
Running costs are already inside the prescribed car values and are not added separately.
How the taxable value is determined
Where the employer bears running and maintenance costs, the prescribed monthly car values already account for them. Separate valuation applies only where the car itself is employee-owned.
Regime availability
- Old regime
- Prescribed value applies
- New regime
- Prescribed value applies
Documentation to keep
Fuel bills and the employer's reimbursement policy.
Legal basis: Rule 3(2), Income-tax Rules
Frequently asked questions
Is fuel and maintenance taxable in India?
Running costs are already inside the prescribed car values and are not added separately. Where the employer bears running and maintenance costs, the prescribed monthly car values already account for them. Separate valuation applies only where the car itself is employee-owned.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is not applicable — the value is prescribed, not exempted; under the new regime it is not applicable — the value is prescribed, not exempted. Legal basis: Rule 3(2), Income-tax Rules.
What records should I keep for fuel and maintenance?
Fuel bills and the employer's reimbursement policy.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.