will LTA liable to FBT

Normally, LTA fall within the meaning of 'Salary'. These benefits are taxable under the head 'Salaries' subject to exemption u/s 10(5). Accordingly, it would not be liable to FBT.

However, if the LTA is not included in 'Salary' then it will be taxed under FBT in clause (F) of sub section (2) of section 115WB & accordingly be liable to FBT.

No its not liable to FBT

LTA is a part of perquisite paid alongwith salary hence no FBT applicable

Hi,

Normally the LTA is taxable under the head salary in the hand of Employee so there is no liability for LTA on FBT.