Festival bonus
This query is : Resolved
26 October 2007
What should be kept in mind (from the Company's perspective)while giving festival bonus?
What are the tax implications?
a) For Company
b) For Employee
What are the tax implications?
a) For Company
b) For Employee
26 October 2007
Festival bonus would be deemed to be festival gifts for the purpose of Fringe benefit tax.
However the collective benefit given to employees would not be covered for FBT.
This is from employer's point of view.
From employee's point of view , it is exgratia taxable as Salary income in the hands of the employee.
However the collective benefit given to employees would not be covered for FBT.
This is from employer's point of view.
From employee's point of view , it is exgratia taxable as Salary income in the hands of the employee.
26 October 2007
FOR COMPANY IT IS PART OF MANPOWER COST AND ADMISSIBLE ASIT FALLS AS BUSINESS EXP. WHOLLY AND EXCLUSIVELY LAID FOR BUSINESS AND NOT IN NATURE OF PERSONAL OR CAPITAL EXP. AND NOT BEING ILLEGAL.
AS FOR EMPLOYEES IT IS INCLUDIBLE AS SALARY AND TAXABLE.
FBT IS NOT ATTRACTED. BUT FBT LEVIABLE ON FESTIVAL CELEBRATION EXP.
R.V.RAO
AS FOR EMPLOYEES IT IS INCLUDIBLE AS SALARY AND TAXABLE.
FBT IS NOT ATTRACTED. BUT FBT LEVIABLE ON FESTIVAL CELEBRATION EXP.
R.V.RAO
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Sale of Equity shares for Purchase of Residential Property
- GST Reverse
- Clarification regarding Import E-way bill transaction type // Regular or Bill from Dispatch From
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Liable to deduct tds and 44ADA
- PRESUMTIVE TAXATION SCHEME
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- ECO SUPPLY REPORTIONG IN GSTR-1
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
