Medical Feamburshment V/s FBT

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This query is : Resolved

abvvora (Querist)

01 October 2007 Dear Mr. Gul and Mr. Ravi Kumar,

Thank you very much for your reply to our querry for medical reamburshment.

Our company is still saying that FBT needs to be decucted.
The fact of the case is
1) Rs. 1,250/- pm deducted by company so total Rs. 15,000/- pa
2) We have to claim, say Rs. 18000/- as medical reamburshment and company is reamburshing Rs. 15,000/- by cheque and not by crediting in salary account. So Rs. 15,000/- is not forming part of the salary.
3) the company is saying that Rs. 1000/- will be deducted form Rs. 15,000/- as company have to pay FBT on Rs. 15,000/-.
3) I understand from your reply that upto Rs. 15,000/- there is no FBT.
4) I request you that can we have some support for the reply so that i can put before the company.

CS Jatin Vora

gaurav goyal

gaurav goyal (Expert)

01 October 2007 please refer Circular no 8/2005, Dated august 29, 2005 issued by CBDT, Frequently asked questions no 69.

Ravikumar.G

Ravikumar.G (Expert)

02 October 2007 Use the following path and get the circular and FAQ it is very clear.

https://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=https://law.incometaxindia.gov.in/dittaxmann/circular//[2005]147TAXMAN0029(ST).htm