27 February 2008
if employer paying paying perquisite by way of fix amount not in actual basis, then is it compulsory to submit bill to company and whats liability of company about FBT and other?
perquisite r:-
1. RCE ( Reimburse conveyance exp.) 2. Petrol 3. Mobile 4. refreshment.
second query is that if co. is paying mediacal allowance (1250 pm.i.e,15000 pa.) whether it is exempt from tax in the hand of employee or this amount should be taken as a medical reimbursement ?
27 February 2008
when you will submited your mobile bill to the employer then it is taxable as in fbt and if empler pay medical exp.up to rs.15000/-is txable in fbt and in excess of rs,15000/-is taxable in the hands of an employee
27 February 2008
SINCE IT IS A PERQUISITE IT WILL FORM PART OF SALARY OF EMPLOYEE TO THE THE EXTENT IT IS TAXABLE.MEDICAL EXPENSES REIMBURSED UPTO 15000/- SHALL BE EXEMPT IN HANDS OF EMPLOYEE BUT THE COMPANY IS REQUIRED TO PAY FBT ON THAT AMOUNT.
27 February 2008
IF THE COMPANY IS PAYING THE FIXED AMOUNT IT MAY BE TREATED AS FIXED ALLOWANCE GIVEN TO EMPLOYEE AND THE ALLOWANCES SHALL BE TAXABLE IN HANDS OF EMPLOYEE TO THE EXTENT THEY ARE TAXABLE .LIKE TRANPORT ALLOWANCE IS ALLOWABLE UPTO RS. 800 P.M . OVER AND ABOVE IS TAXABLE, AND NO FBT SHALL BE CHARGEABLE ON THAT.SINCE THE ALLOWANCE IS GIVEN THE EMPLOYEE IS NOT REQUIRED TO PRESENT THE BILLS
27 February 2008
1.Your question itself begins with "if the employer paying paying perquisite by way of fix amount not in actual basis"...
Therefore where is the need for bills etc. The amount will be included in the employee's taxable income.
There is no FBT liability for company on this.
2.In the case of medical, to the extent bills are submitted (subject to a maximum of rs 15000 p.a)the employee will be given relief from tax calculation. FBT is payable on this amount.
27 February 2008
Reimbursement itself means that the employee first spends on the travelling and claims reimbursement by submitting travelling tickets/bills etc.. provided the travelling is a official trip and not LTA. The amount of reimbursemet attracts FBT.This implies that unless bills are submitted the employee cannot claim RCE. it is not taxable in the hands of the employee.
CAclubindia
