Will LTA is liable to FBT. If yes at what rate 5% or 100%. if the employer is a software company any difference
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will LTA liable to FBT
Replies (7)
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.
pls refer circular 8 of 2005
No its not liable to FBT
| Originally posted by :harsha | ||
| " | Will LTA is liable to FBT. If yes at what rate 5% or 100%. if the employer is a software company any difference | " |
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.
NO LTA IS NOT LIABLE FOR FBT BECAUSE IT IS A PART OF SALARY & COVERS UNDER THE SALARY.
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