FBT on Medical reimbursement

This query is : Resolved

Sanjeev Kumar Sharma (Querist)
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14 March 2009
Dear All

Please confirm that when an employer reimburse the medical exp. 20000 to an employee, Is FBT paid by the employer on the same or upto 15000 only?

With regards
Sanjeev

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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14 March 2009 on Medical Exps. reimbursed by Employer upto Rs.15000/- FBT is levy
Above 15000/- (in your case Rs.5000/-) taxable in the hands of employee

Sanjeev Kumar Sharma

Sanjeev Kumar Sharma (Querist)
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14 March 2009
Please also confirm that the exemption of 15000 is in the hands of employees, then why company pay the FBT on it?

K V Subba Rao

K V Subba Rao (Expert)
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14 March 2009 CBDT opined that since medical expenditure upto Rs 15000 is not taxable in the hands of the employee as salary, it should be subjected to FBT.

Please check the following:
http://www.taxlawsonline.com/news/article/fringe.asp