FBT on Medical Reiumbursement

This query is : Resolved

SHAH ATUL (Querist)
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10 March 2009 Can Employer deduct the FBT from employee salary on account of payment made for medical reumbursement Rs.15,000 P A.

One of my friend's employer has deducted Rs.1000 as FBT from medical reiumbursemnt.IS it OK.Can salaried employee get the deduction from tax .

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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13 March 2009 employer can not deduct FBT from salary.
your employer seems to be rude.
if he deduct FBT salary net recipt shall constitute salary as FBT is direct tax (not indirect)and net salary shall be taxable.