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
S.RAVICHANDRAN
(Expert)
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
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
