FBT doubts

751 views 4 replies

Hi

Few questions on FBT - 

1. Now FBT has been abolished, perks are taxable at the hands of employees. But does FBT meant that employer paid tax on these perks. 

e.g. I avail motor car allowance of 10000, does this mean tax of 10000 was paid by my employer earlier? If yes, was employer allowed to deduct these taxes as expenses for its own tax calculation purposes?

2. I see few perks are still there. e.g. mean coupons, medical reimbursements and so on.

Where I can get list of all such things which are still subjected to FBT?

3. I know few companies which still allow motor car expenses for tax deductions. what about them?

4. Will direct tax code affect this?

(I am not CA or aspiring CA, but I find this forum extremely useful, thanks!)

Replies (4)

FBT has been abolished w. e. f. 01.04.2009. No expenses liable for FBT w. e. f. that date.

There are seperate perqusites valuation rules notified by the government.

As per your example tax is to deducted on the amount of Rs. 10,000/- at slab rates and not tax is paid for Rs. 10,000. Since the tax is being deducted from your salary only there is no question of employer claiming the tax as expenses.

DTC won't affect it anymore dear

Hey FBT is abolished and the perks are to be taxed as like before u/s 17 (2)......... Direct tax codes are only for change in slab rates.... No worries regarding that here....... Cheers........

Is FBT applicable for May 2010 exam(PCC)?If not how would u treat club facility,car facility and telephone facility provided to employer??/

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