Vehicle Lease Policy - One India

This Vehicle Lease Policy (‘Policy’) aims to provide the employees who are provided a vehicle by Microsoft India, with all the

The Policy will be subject to regular review, and Microsoft India may at any time amend the provisions of this car Policy if th

Eligibility Guidelines

All full-time employees (FTEs) in Microsoft India are eligible to avail the car lease benefit under this Policy. Company-leased
to the Policy.

Microsoft is taking cars on lease from the following vendors:

 GE Capital India Review details and overview of processes with GE as Financer.

 Sundaram Finance Limited Review details and overview of processes with Sundaram as Financer.

Employee Undertaking

As per the lease Policy, the employee is required to fill in the Employee Undertaking-New Car Lease document, if opting fo

Refer to the Step by Step Guide for Instructions and guidelines to fill the undertaking form.

Lease Tenure Options

Employees who choose to avail the car lease benefit under this Policy have an option of availing the lease for a tenure of 36

In order to check the rental, please check with the concerned vendor directly.

Lease Rental Guidelines

Employees would need to select a car under this Policy so that the lease rent per year for the car is equal to or below 25 pe
employee is responsible for VAT on lease rentals.

The lease rentals are subject to variation at any time during the tenure of the lease in the event of a change occurring in
the 1961 the Service Tax rate, and the provisions or variations in the cost of funds to the lessor.

Residual Value

To know how the residual value of the car would be calculated at the end of the lease tenure reach out to the specific Finan

Note: Employees cannot negotiate the terms and conditions of the contract agreement between Microsoft India and the
Le

Limits

Employees who use a car under this Policy are eligible to claim reimbursement of car maintenance expenses. The eligible m
determined as shown in the following table for each financial year (April to March).
 Stock levels
Level 57 and below
Level 58 and above

Employees would be reimbursed the car maintenance expenses based on actuals every month on submission of bills.

The perquisite value of the car would be added to the taxable salary of the employee in accordance with the provision of In

Maintenance Claim Process

Vehicle Maintenance Checklist: Refer to the checklist of components that can be submitted under vehicle maintenance, to c

Employees can claim reimbursement of car maintenance expenses subject to the declaration of amounts in the EY Payroll-M

EY India Payroll-My Space User Guide provides step by step guidance to navigate through all the actions available on the
EY

Note: Maintenance amount is a component of the Flexible Basket of Allowance. Employees are to allocate the maintenance

Rights and Obligations of the Employee

The use of the company-leased car without a valid driver's license is prohibited. The employee must immediately notify A
that the employee, at all times, can submit proof of a valid driver's license.

The company-leased car cannot be rented, lent, pledged, and used for purposes of a sideline occupation or for commercia

The employee must leave the company-leased car locked at all times, when the said car is not in use. Any theft, damage,
o

The employee shall bear all administrative fines, fines, and other penalties for any violation of the traffic regulations.

Accidents/Damages/Insurance

Employees are responsible for purchasing the insurance for the company-leased car. It is the employee's responsibility to

In the event of accidents, irrespective of who is at fault or of any consequences under criminal law, the police shall be

noti Liability of Employee

The employee is liable for all damages caused by intent or gross negligence.

Note Gross negligence exists if the employee violated the required diligence to a particular extent. This includes in parti
accidents caused by insufficiently cleaned windows, and so on. This list is indicative and not exhaustive.
Third Party Use

Before permitting any third party (for example, family members, driver) to use the company-leased car, the employee mus

Income Tax impact of Vehicle Lease

The vehicle is provided to the employee for both personal and official purposes. As per Rule 3 of the Income-tax Rules, 19

 For vehicles with cubic capacity less than or equal to 1.6 liters, INR 1,800 per month would get added to the empl
 For vehicles with cubic capacity exceeding 1.6 liters, INR 2,400 per month would get added to employee’s total tax
 In case the driver's salary is being claimed by the employee, INR 900 would additionally get added to employee’s