Joy Ltd. transfers a honda city car to its employee Happy after using it for 4 years and 10 months, for ₹2,10,000. Cost of the car is ₹10,00,000. The value of taxable perquisite in the hands of Happy is —

Correct answer: (B) ₹1,99,600. Use four completed years at 20% reducing balance: 10,00,000×0.8⁴ = 4,09,600. Less employee payment 2,10,000 gives 1,99,600. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.