Employers can reimburse employees for using personal vehicles for business travel, commuting, or company-owned cars.

While India does not impose a statutory mileage rate, businesses should ensure their reimbursement policies remain reasonable and aligned with industry standards.

Companies typically choose between:

  • A fixed rate per kilometre;
  • Actual fuel and maintenance cost reimbursements.

Employers should document their approach clearly to ensure compliance and transparency.

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