Dear Freinds,
Its urgent
In a company Salary Part-B is given under the Head as Car Fuel , Car Driver, Car Maintenance &Insurance, Society charges, Residence Telephone, Mobile expenses as Fixed component and also on Actual bills, employee to employee it differs.Earlier company gives FBT on it. My Question is that:-
1.As it is a Fixed part in salary should it be treated as allowance or perquisites?
2.If it is allowance then these are fully taxable?
3.Can it be treated as perquisites as company takes the Bill against each expenses as reimbursement tough it is a part of Salary is it applicable as per IT Act?
4. What is taxability of these components now after NOTIFICATION as on18 December?
PLease................................promptly and clearly answer my Questions individually
Thanks in Advance
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Taxability of Perks
1.As it is a Fixed part in salary should it be treated as allowance or perquisites?
BEING A FIXED PART OF SALARY IT SHOULD BE TREATED AS ALLOWANCE AND NOT PERQUISITES.
2.If it is allowance then these are fully taxable?
YES, IT IS FULLY TAXABLE
3.Can it be treated as perquisites as company takes the Bill against each expenses as reimbursement tough it is a part of Salary is it applicable as per IT Act?
AS YOU HAVE SAID THAT IT IS A FIXED PART OF SALARY EVEN THEN IF THE COMPANY TAKES THE BILLS IT DOES NOT MAKE ANY DIFFERENCE. IT WILL BE TAXABLE IN THE HANDS OF EMPLOYEE
4. What is taxability of these components now after NOTIFICATION as on18 December
AS PER THE NOTIFICATION OF 18TH DECEMER, 2009
FBT is removed w.e.f 01.04.2010 and all the perquisities will be taxable in the hands of the employee.
The Companies who have paid FBT or advance FBT will be able to adjust the amount paid against the advance tax for the March,2010 quarter.
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