Hi Everyone,
My wife is employed with a large Public Ltd. Company. She has been given an option of choice pay for tax palnning purpose. I would like to have some clarifications on the tax implications for the same.
She has a choice to opt for Rs.2700/- food coupons per month
And also Rs.12000/- per month for fuel and maintenance
Will this be treated as tax free in her hands or will we have to pay tax on it. In FBT regime the tax on such perks was paid by employer but now after removal of FBT I dont have clear idea about it.
The above amount will be adjusted in the current CTC structure only. That is if she opts for food coupons then she will get Rs.2700/- less in take home and in case of fuel, the amount will reflect as fuel and maintenance. This is not a reimbursement. this is the flat amount which is paid per month. The only proof to be provided is that of ownership of vehicle.
Thank you in advance for your help.
Regards
Chinmay
CAclubindia
