Since FBT has been withdrawn now, what kind of perquisites can be taxable in the hand of employees. For Example - Can reimbursement of expenses towards running & maintenance , business promotion can be taxed in the hand of employees or not?
Another, we were providing meal vouchers to employees that does not attract FBT , can it be made taxable now in the hands of employees.
23 July 2009
Reimbursements of the expenses are not treated as income as far as they are limited to the actual bills submitted. So, they wont be taxed in the hands of the employees. As far as Business Promotion expenses are concerned they are not for the benefit of the employee and thus cannot be treated as income in their hand.
Meal Vouchers amounting to Rs. 50 per day will not be taxable in the hands of the employees anything above that will be.
23 July 2009
The exact Guidelines will be issued in this regard by CBDT by way of new rule in the IT Act. You are requested to kinldy wait till that time.
CAclubindia
