03 August 2008
It should be only upto Rs.800/- permonth. Over & above that amount there is no fbt liability as that much of amount is taxable in the hands of the employee.
03 August 2008
Dear Abhishek, in my knowledge, it is transport allownace which is exempt upto Rs. 800. Rati had asked for Conveyance reimbursement, and not about the Allownace. Conveyance reimbursement is fully tax free in hands of employee if incurred for official purpose and hence, covered in FBT. If it is wrong, then please clarify me in this regard.
CAclubindia
