is conveyance/transport allowance subject to FBT?

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2010 Hi,
Kindly let me know if conveyance/transport allowance is subject to FBT? If so, what is the tax rate?

Aditya Maheshwari

Aditya Maheshwari (Expert)

13 January 2010 It was not subject to FBT and also FBT scrapped w. e. f. 01.04.2009.

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2010 Is it been scrapped for employers only? or for employees also?

Aditya Maheshwari

Aditya Maheshwari (Expert)

13 January 2010 Employees never paid FBT. It is paid on the perquisites provided by the employer to the employee.

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2010 Thank you :-)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

13 January 2010 FBT Abolished ,now it is taxable in the hands of employee

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2010 Pls clarify. What is taxable in the hands of employees?

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)

14 January 2010 Conveyance/Transport Allowance was not subject to FBT during FBT regime. From 01/04/2009 FBT has been withdrawn. As earlier, even now it is taxable in the hands of employees only, subject to an exemption u/s 10(14) of Rs. 800 p.m

Aditya Maheshwari

Aditya Maheshwari (Expert)

14 January 2010 Now the same is taxable means the same is liable for payment of income tax by the employee on the perquisites. Conveyance allowance upto Rs. 800/- p. m. exempt u/s 10(14)

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2010 Thanks a lot to both of you.

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