Festival bonus
This query is : Resolved
26 October 2007
What should be kept in mind (from the Company's perspective)while giving festival bonus?
What are the tax implications?
a) For Company
b) For Employee
What are the tax implications?
a) For Company
b) For Employee
26 October 2007
Festival bonus would be deemed to be festival gifts for the purpose of Fringe benefit tax.
However the collective benefit given to employees would not be covered for FBT.
This is from employer's point of view.
From employee's point of view , it is exgratia taxable as Salary income in the hands of the employee.
However the collective benefit given to employees would not be covered for FBT.
This is from employer's point of view.
From employee's point of view , it is exgratia taxable as Salary income in the hands of the employee.
26 October 2007
FOR COMPANY IT IS PART OF MANPOWER COST AND ADMISSIBLE ASIT FALLS AS BUSINESS EXP. WHOLLY AND EXCLUSIVELY LAID FOR BUSINESS AND NOT IN NATURE OF PERSONAL OR CAPITAL EXP. AND NOT BEING ILLEGAL.
AS FOR EMPLOYEES IT IS INCLUDIBLE AS SALARY AND TAXABLE.
FBT IS NOT ATTRACTED. BUT FBT LEVIABLE ON FESTIVAL CELEBRATION EXP.
R.V.RAO
AS FOR EMPLOYEES IT IS INCLUDIBLE AS SALARY AND TAXABLE.
FBT IS NOT ATTRACTED. BUT FBT LEVIABLE ON FESTIVAL CELEBRATION EXP.
R.V.RAO
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