The assessing officer if he says that since fbt is recovered it will become employee salary and if he reopens the employees files then it will have adverse effect on your company.
Got your point. One option which I can think off is - Include it as taxable salary for the employee and pay tax on the same
Another option is - Suppose as part of the restructuring, we reduce the salary by the FBT amount and only pay the balance to the employee and the FBT portion is paid to the tax authorities. (no recovery of FBT from employee), will it stop the tax officer from reopening employee files.
Also, if somebody has a better option, please let me know
CAclubindia
