If the company has paid FBT on LTA then same should not Form a part of Salary Income as per the circular 8/2005. In that case if I revised my salary structure- Like for egs. if i receve Salary of Rs. 100/- I shall split the 50% to LTA and company may pay tax on that Rs.3(50*20/100*30%) where as I have to pay more tax on that if i have consider same as income.Even as LTA out of bracket of Five years I can claim for only TWO years. For that LTA paid will be my income provided i give the details of Tour with enclosures and for the other two years same will not be form of my income Since company is paying FBT on that.
Now my question is
Why the LTA should not be form of my income even though FBT is paid by company?
Is it not that goverment loose the revenue by not considering LTA as income for that year when FBT is paid which is less than tax paid by the individulas?
Please do inform me
CAclubindia
