Increased tax on Tax on incentives???

This query is : Resolved

Manish (Querist)
Follow

08 July 2009 Hi,

I am getting a monthly reimbursements of Rs6500/- on account of car petrol and driver. Post budget and abolition of FTB - will this amount become taxable?

Thanks in advance.

CA Kartik Pandya

CA Kartik Pandya (Expert)
Follow

09 July 2009 Nops dear, Actually FBT is abloshied from 1.4.2009 in this budget so now onwards this will not be taxable.

taxindiaconnect

taxindiaconnect (Expert)
Follow

10 July 2009 Dear Manish, you have rightly pointed out in your query that the post abolishing FBT certain reimbursements etc. will be treated as part of perquisite under section 17 of The IT Act, accordingly be taxable in the hands of the employee. A full circular, as announced in his speech, be issued and containing the rules for perquisite valuation and items of perquisites in due course.

Upgrade to CAclubindia Pro. Subscribe Now!