28 March 2008
UNDER SEC 115 WB(1)DEEMED FRINGE BENEFITS INCLUDE EMPLOYEES WELFARE EXP.TAXED @20% UNDER FBT BUT DOES NOT INCLUDE ANY EXP. INCURRED OR PAID TO FULFIL ANY STATUTORY OBLIGATION OR MITIGATE OCCUPATIONAL HAZARD OR PROVIDE FIRST AID FACILITIES IN HOSPITAL OR DISPENSARY RUN BY THE EMPLOYER. SO THE MEDICAL REIMBURSEMENTS DO NOT COME UNDER ABOVE CATEGORY AND TAXED AS FBT @20%IN THE HANDS OF THE EMPLOYER. R.V.RAO
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