Core rule: section 27(1)(b) and rule 13 prescribe the employee vehicle-benefit valuation. For an employee covered by the monthly-remuneration rule, the benefit is 0.5% of the relevant salary base. This is an addition to employment income, not a 0.5% tax rate.
Example: a vehicle is available for the employee's private use throughout the year. Assuming the relevant annual salary base is NPR 1,200,000, the benefit included is NPR 6,000. Income tax is then calculated on total taxable remuneration at the applicable annual bands.
A cash transport allowance is different: its cash amount is generally included under section 8. Establish whether private use is available and document the arrangement; do not treat every vehicle used only for the employer's work as a personal benefit.