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Medical reimbursement and Internet Charges taxable as FBT

anand (Student) (13 Points)

20 July 2007

Hi,

Can any one let me know wheather medical reimbursement given to employees as a fixed percentage on Salary is taxable as FBT in the hands of the employer ?

Also kindly let me know about the detail of FBT in relation to Internet Charges when it is taxable in hands of employer ?

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19 Replies

Shivaram (C A) (27 Points)
Replied 20 July 2007

Hi anand, reimbursement of medical bills upto Rs15000/- is not taxable in the hands of employee, so FBT is liable but if it exceeds Rs 15000/- then it will enter into employees computation so FBt is not applicable

rajgiri21 (CA) (14 Points)
Replied 21 July 2007

Medical Reimbersement upto Rs.15000 per annum per employee,is chargeable under FBT.If it exceeds Rs.15000 then itz charged in the hands of the employee as perk. So itz not liable under FBT. As far as internet charges are concerned, it is not liable under FBT.

ASHISH YADAV (Chartered Accountant) (119 Points)
Replied 06 November 2007

as u are saying here,ithink this is not medical rembuirsment but it is fixed medical allowance because rembuirsment is not given as fixed percentage of salary.so in this case there is no fbt

(Guest)

reply to the query

Ankit Dangayach (Chartered Accountant) (691 Points)
Replied 07 November 2007

Internet charges are not liable to FBT.
Reimbursement of medical expenditure incurred by employee in an unapproved hospital is liable to FBT only if the amount of such reimbursement does not exceed Rs 15000.However if no medical exenses are incurred by employee (or such reimbursement is given irrespective of any expenditure incurred by employee) and he still get income in the name of medical reimbursement as a fixed percentage of salary then such reimbursement is taxable in the hands of employee as such payment are kind of allowanaces.Here employer has to take undertaking from the employee regarding the expenditure incurred by him during the previous year on medical expenses so that he deducts TDS according to it and also for calculation of FBT.

(Guest)

Sometimes employers give a fixed amount of medical reimbursement to employee to save employee from tax. Actually it is a part of their CTC but They claim it separately. and it is fixed. So Medical reimbursement upto 15000.00 p.a is lable for FBT in the hands of Employer. in excess of that it taxable in the hands of employees. And regarding internet charges sometimes it is treated as FBT expenses and sometimes it is treated as Non FBT expenses. but i am not clear about the provision

arun (ca student) (194 Points)
Replied 20 June 2008

medical reimbursement is liable for fbt only if it is less then 15000 and if it is cross this limit than the excess amount is a part of salary to the employee therefore it is not liable for fbt.but in the case of internet charges is not under FBT. But if employer using internet for his personal use then it is liable for FBT

(Guest)

Can i cliam medical bills of my mother and father in support of bills for mediacal expenses to be submitted to my employer.

nirav karia (ca (final)) (27 Points)
Replied 17 July 2008

internet charges are not liable to fbt bcoz if there is a lleased line then the posiblity for taxing the same will arise

ca nirav karia

shiva (nil) (26 Points)
Replied 17 July 2008

hi i want to know that medical expenses attracts FBT

SANTHIPRIYA S (Student) (64 Points)
Replied 22 July 2008

Medical reimbursement upto Rs. 15,000 is taxable under FBT.

and internet charges will not attract FBT

kapilll (Investigator) (171 Points)
Replied 23 July 2008

anything which is fixed percentage is not REimberusement !!!

(Guest)

What is the exact meaning of medical reimbursement?

(Guest)

Originally posted by :anand
"	Hi, Can any one let me know wheather medical reimbursement given to employees as a fixed percentage on Salary is taxable as FBT in the hands of the employer ? Also kindly let me know about the detail of FBT in relation to Internet Charges when it is taxable in hands of employer ?	"