My company reimburses to employees Driver Salary exps on actuals as a part of their CTC. The Car is not company provided. I want to ask whether such reimbursements attracts FBT or the same is taxable in the hands of employees. Does it make any difference if the car is company provided.
22 May 2009
It is an obligation of employee met by employer, hence the same is taxable in the hands of employee, the same is not liable to FBT, since it forms the part of employee salary and the same is taxable in the hands of employee.
Where as in second case, since the expenditure is in relation to the running of car, the same is liable to FBT
CAclubindia
