Frienge benefit Tax

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This query is : Resolved

Vivek Gangwal (Querist)
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23 October 2007 Conveyance Reimbursement comes under the ambit of FBT, but for employee it requires submission of bills, what if emloyee could not able to provide entire conveyance reimbursement bill which is paid as CTC to him , which is included as a Part of salary on which employee also has to pay Income Tax`on that @ 30%. & Co. pays FBT around 7% simultaneously. this is double tax on emloyer & employee.

what could be the alternative of this.

NO the concept is that this is double taxability eother in the hand of employer or employee.

take the eg of Superannuation of more than rs 1 lacs FBt is leveied on this as well as it is taxable in the hands of employee.

Review has to be done by us on this ground

Regards,

vivek gangwal

S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)
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23 October 2007 The concept of fringe benefits tax is that the individual benefit accorded to employees ( not collective benefit viz tea coffee expenses etc.) should not escape taxation.

Your case suggests that the conveyance expenses shall not be included as part of salary for that employee. Let it go as expendtiture for employer only. Then the employee is relieved of the TDS on that part and the employer has to bear FBT on that . No other go.