income tax
This query is : Resolved
CA Gaurav Gupta
(Querist)
11 November 2008
credit card exp reimbursed by employer(shopping exclusively 4 private purpose) will cover under FBT or that will be monetary obligation of employee discharge by employer?
i want to know exactly how we diff. that exp. will cover under fbt or not (consider only those exp which r covered club facility, credit card etc)
i want to know exactly how we diff. that exp. will cover under fbt or not (consider only those exp which r covered club facility, credit card etc)
Deepak Agrawal
(Expert)
11 November 2008
All re-imbursement charged as income in employee's hand is not liable to FBT.
Also expenses incurred by employer on behalf of employee is exempt in hands of employee is not liable to FBT. It is because 1st it chargeable in hands of employee & then exempt.
There is difference between "NOT CHARGEABLE" & "EXEMPT"
Credit Card exp re-imbursement is chargeable in hands of employee. Hence no FBT on it
Also expenses incurred by employer on behalf of employee is exempt in hands of employee is not liable to FBT. It is because 1st it chargeable in hands of employee & then exempt.
There is difference between "NOT CHARGEABLE" & "EXEMPT"
Credit Card exp re-imbursement is chargeable in hands of employee. Hence no FBT on it
S.Srinivasaraghavan
(Expert)
11 November 2008
It is monetary obligation discharged, liable for full tax.
THe differentiation is the expenditure should be within the list of items for FBT.
THe differentiation is the expenditure should be within the list of items for FBT.
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