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Fringe Benefit Tax

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(Querist)
02 March 2009 Dear all,

We have reimbursed a sum of Rs.1,35,00 to one of our employees for notice period pay to his previous employer. Does this attract FBT , if so what is the percentage? Does it become Income for the purpose of calculation of tax for the employee?
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K V Subba Rao

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K V Subba Rao (Expert)
02 March 2009 It is taxable in the assessment of employee; hence no FBT

By the way, in these days of recession also, is the practice of reimbursing Notice Pay still continuing !
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CA.Tarun Maheshwari

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CA.Tarun Maheshwari (Expert)
02 March 2009 No FBT on this reimbursement. It is in the nature of salary and taxable in the hands of employee only.
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indira

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indira (Querist)
02 March 2009 Thank you both a lot

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