FBT on medical allowance
This query is : Resolved
04 March 2009
The company is paying medical allowance and calculates FBT on Rs. 15,000 which is exempt in the hands of the employee but for those employees whose income is not liable under income tax act the company does not calculate FBT on the medical allowance paid to such employee. Is it correct?
Also, the medical allowance paid to such employee is dr to salary in the account but shown as medical allowance in the salary sheet, will it make any difference?
Also, the medical allowance paid to such employee is dr to salary in the account but shown as medical allowance in the salary sheet, will it make any difference?
04 March 2009
Medical allowance given to emplyees is fully taxable in their hands.
04 March 2009
However, reimbursement of medical expenditure up to Rs. 15,000.00 is exempt in hands of employees.
On the same side, medical expenditure reimbursement up to Rs. 15,000.00 come under FBT.
There is no difference that employees salary is taxable or not for the calculatiopn on FBT. FBT is applicable on all the reinmursement of medical expenditure up to Rs. 15000.
On the same side, medical expenditure reimbursement up to Rs. 15,000.00 come under FBT.
There is no difference that employees salary is taxable or not for the calculatiopn on FBT. FBT is applicable on all the reinmursement of medical expenditure up to Rs. 15000.
04 March 2009
If this is shown as medical allowance in the salary sheet then it will be fully taxable in the hands of employees.
And this is shown as reimbursement then it is exempt up to Rs. 15000.
And this is shown as reimbursement then it is exempt up to Rs. 15000.
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