Fringe Benefit Tax
This query is : Resolved
20 April 2009
whether cash gift given to employee is taxable in his hand or liable to FBT?
20 April 2009
As per Section 115WB(2)(O), any expenditure on gift in cash or kind by employer is liable to Fringe Benefit Tax to be paid by the employer.
For instance, expenditure debited to P&L A/c by a company under the head "Gift" Rs. 1,00,000/-, value as per section 115WC,i.e., 0.5 comes to Rs. 50,000/- FBT @ 30% comes to Rs. 15,000 Add : Surcharge + Education Cess + Secondary Education Cess to be paid by the employer.
For instance, expenditure debited to P&L A/c by a company under the head "Gift" Rs. 1,00,000/-, value as per section 115WC,i.e., 0.5 comes to Rs. 50,000/- FBT @ 30% comes to Rs. 15,000 Add : Surcharge + Education Cess + Secondary Education Cess to be paid by the employer.
20 April 2009
Liable for FBT
01 May 2009
Tne mode of payment does not change the charater of the payment. So FBT is applicable in this. I agree with the experts on this.
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