can anyone suggest me whats impact on calculation of salary income after abolishied fbt
will employee have to pay more tax now
Amir
(Learner)
(4016 Points)
Replied 08 February 2010
Dear Rajeev,
Perks/Expenditure which were subject to FBT was exempt in the hands of employees
But now since the FBT has been abolished those perks/benefits would again be taxable in the hands of employees..
Eg -
1) Motor Car facility
2) Gifts
3) Telephone reimbusements, etc
RAJEEV
(article)
(156 Points)
Replied 08 February 2010
dear amir
if employer give a motor car facility to employees then its all taxable in the hand of employee.and there is not motor car allowances treatment
RAJEEV
(article)
(156 Points)
Replied 08 February 2010
dear amir
if employer give a motor car facility to employees then its all taxable in the hand of employee.and there is no motor car allowances treatment
Amir
(Learner)
(4016 Points)
Replied 08 February 2010
Dear Rajeev,
Till the time FBT was there, "Expenses on running & maintenance of Motor Car (including Depreciation thereon) was chargeable to FBT, & hence not considered as perquisite in the hands of employees"
CA Saurabh Shukla
(Accounts Executive)
(223 Points)
Replied 09 February 2010
Dear Rajeev if car facility is provided to employee it is taxable as per provision of income tax "valuation of Perquisite".
If Car Allowance is provided to employee it is fully taxable under income tax act.
Correct me if i am wrong..............
CAclubindia
