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FBT

ritesh (article asst) (29 Points)

11 June 2007

cash incentive given to employees

will it taxable in the hands of the employee as perq

will the employer pay FBT on it

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8 Replies

(Guest)

Cash incentive is taxable in the hands of employee .....hence no FBT

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(Guest)

cash incentive is basically a part of salary so it will be treated as perquisites and accordingly taxable i.e. liable to tds.

ritesh (article asst) (29 Points)
Replied 12 June 2007

thank you

ritesh (article asst) (29 Points)
Replied 12 June 2007

thank you sanket

(Guest)

Dear friend, all obligations are taxable in the hand of employee. cash incentive is a obligation for a employee. so it will be taxable in the hand of employee vice versa fbt is not liable on cash incentive.

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tushar jain (Service) (107 Points)
Replied 13 June 2007

No FBT is levied on cash incentives as it is not covered by the exclusive list of expenses chargeable to FBT. Secondly cash incentives are taxable in the hands of employees and hence no FBT shall be payable on it.