Reimbursement of Medical Expenses Vs FBT

Only upto the exemption limit of Rs 15000 per annum reimbursement. will attract FBT.

FBT is to be paid only to the extent bills are submitted by the employee. For ex out of 15000, if the employee submits bills only for Rs. 8000, FBT has to be paid only on 8000 as the employee pays taxes on the balance 7000 anyways.

Thumb rule is that it should not be taxed on both sides, only the company (FBT) or the employee (TDS) should pay tax on a given amount.

Anyone can correct me if I am wrong.

To be taxed as FBT there should be employer & employee relationship. What is not Perquisite and not taxed in the hands of the employee it will attract FBT. medical allowance paid to the employee will not attract FBT when such expenditure will not exceed Rs.15,000 p.a.