01 January 2009
What are provisions of food coupens the payment made by employer to direct agency for Employees. Is such amt is deductible from the salary of employee while computing the TDS amt of employees??. Is FBT payable to Employer?
02 January 2009
The Central Board of Direct Taxes has clarified that employees are not to be taxed when they are issued non-transferable food coupons usable only at food outlets.
There is no limit laid down by law on the amount that can be paid through such coupons. Similarly, the employer is also not chargeable to Fringe Benefit Tax on the same.
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