FIXED TELEPHONE ALLOWANCE

It is taxable in the hands of employee.
 

It is true that Company comes under the purview of FBT, but Telephone Allowance given to Employees does not attract FBT. Because it is chargeable to tax u/s 17, while computing Income of the Employee. Moreover if the Company gives fixed Telephone Allowance to its Directors, who are not employees of the Company, then it comes under the ambit of FBT.