is conveyance/transport allowance subject to FBT?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2010 Hi,
Kindly let me know if conveyance/transport allowance is subject to FBT? If so, what is the tax rate?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 January 2010 It was not subject to FBT and also FBT scrapped w. e. f. 01.04.2009.

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2010 Is it been scrapped for employers only? or for employees also?

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 January 2010 Employees never paid FBT. It is paid on the perquisites provided by the employer to the employee.

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2010 Thank you :-)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 January 2010 FBT Abolished ,now it is taxable in the hands of employee

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2010 Pls clarify. What is taxable in the hands of employees?

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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14 January 2010 Conveyance/Transport Allowance was not subject to FBT during FBT regime. From 01/04/2009 FBT has been withdrawn. As earlier, even now it is taxable in the hands of employees only, subject to an exemption u/s 10(14) of Rs. 800 p.m

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 January 2010 Now the same is taxable means the same is liable for payment of income tax by the employee on the perquisites. Conveyance allowance upto Rs. 800/- p. m. exempt u/s 10(14)

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2010 Thanks a lot to both of you.