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FBT

Ankur (112 Points)

10 May 2007

DEAR FREIND,

IN SALARY PACKAGE IF EMPLOYEE IS GIVEN TRANSPORT ALLOWANCE,CHILDREN EDUCATION ALLOWANCE WHETHER FBT IS LEVIABLE ON IT OR NOT.

GIVE URGENT REPLY.

THANKS

ANKUR

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7 Replies

Pawan Kapur (29 Points)
Replied 10 May 2007

No. In my view, since these allowances are taxable in hands of the employee (even though some portion thereof may be exempt), no FBT is payable thereon by the amployer.

Vimal Suryakant Raithatha (13 Points)
Replied 10 May 2007

NO THE FT IS NOT LEVIABLE ON THESE AS THESE ARE TAXABLE AS PERQUISITES IN THE HANDS OF THE EMPLOYEES AND THEREFORE THE EMPPLOYER IS NOT LIABLE TO PAY THE FBT ON THESE.
AS PER FBT THE PERQUISITES WHICH ARE COLLECTIVELY ENJOYED BY THE EMPLOYEES AND CANNOT BE SEGREGATED TO THE INDIVIDUAL EMPLOYEES ARE TAXABLE IN THE HANDS OF THE EMPLOYER.
THANX

Ankur (112 Points)
Replied 10 May 2007

THANKS MR. VIMAL

Ankur (112 Points)
Replied 10 May 2007

THANKS MR. VIMAL & PAWAN

Rachel (22 Points)
Replied 10 May 2007

Hi Ankur,
No FBT on Transport Allowance or any Other Allownce is Leviable .
Allownces Dn't come Under Fringe Benefits.

Bye

Chandru (21 Points)
Replied 10 May 2007

to be very simple FBT is charged on benefit given to employee and not taxable in the hands of employee OR the benefit is not exempted u/s 10 in the hands of the recepients.
on the same footings , all your querry items of income are either taxable in the hands of the employees or they are exempted u/s 10.

Hence no FBT is taxed on them .
Update me if i am wrong

Shipra (25 Points)
Replied 10 May 2007

hi frn as all said tht it is enjoyed by the employee therefore its not taxable in the hands employer but to certain extent...as u r aware tht these are exemp in the hands of employees till some extent therefore till tht extent they ae taxable in the hands of employer(800pm on travelling and 200pm for 2child -children allowance) hope u r clear in this.