28 November 2008
I am an employee of a company. We have received the following circular from our HR department.
Is it right, bcoz as per Income Tax Act we can give exemption up to 50 rs per day only?
I am calculating tax on salaries of all the employees of the company. so i want the answer.
Whether we have to pay FBT on the same?
HR/PERS/ACCOR/2008 Date: 25/11/2008
CIRCULAR
Sub: Income tax benefit for employees by providing Accor Meal Vouchers.
Dear colleagues,
In our continuous endeavors to provide maximum income tax free salary to our employees, we hereby propose to provide Accor meal vouchers every month as part of CTC.
The details are as under:
a. The Accor meal vouchers will be provided to all the employees, as per the consent taken from each employee in writing. b. The maximum amount allocated for the coupon will be as under: I GM & above - Rs. 3500/- per month II Dy Manager to Dy GM - Rs. 2500/- per month III Upto Asst. Manager - 2000/- per month
c. The above amount will be adjusted from canteen coupon reimbursement and remaining amount from special allowance of CTC. d. The Accor meal voucher will be in form of booklets containing voucher of value in denomination of Rs. 5,10,50,75 e. The Accor meal voucher will not be taxable in the hand of employees as well as no FBT is to be paid by the company. f. The Accor meal voucher can be used in number of food outlets across India and can be used as mode of payment for Purchase of services / food instead of paying cash. g. The frequently asked questions with their reply are as under which will give full clarity in the matter. h. The distribution of coupons at Ahmedabad will be through Facilities department and at branches will be through one of the Specific representative whose name will be declare with in short period. i. The ticket restaurant all India directory i.e. where coupon can be used, is available on circle D.
The scheme is voluntary and hence those who are interested in availing this scheme so as to save income tax may send / give their consent within four days, stating their ;
1. Employee No. 2. Name 3. Designation 4. Department 5. Place of posting
On mail id employeecare@x.com or to Mr. A - Executive – Personnel
Hope this newly introduced system of meal voucher will be useful to our colleagues and will take benefit to save their income tax.
CAclubindia
