Dear friends !!
While watching a programme called TAX GURU in IBN 7 last week, i came across an aspect related to FBT which i would like to share with you.
Query : " Is the company required to pay FBT on the sum paid for the purpose of notice period compensation on behalf of a newly joined employee to his ex - employer ?
Reply : If the company does not pay FBT on such amount then the benefited employee will be liable to pay tax on the sum under the head of " Salaries "
Hense the expert suggests all the employees who take such bebefit to ensure that FBT is paid by the employer on the amount to avoid additional tax ??
Here my query is ,
If the company agrees to pay FBT then under which head of sec 115WB can she classify such amount and why ?
Kindly send me your opinions.
Regards
Deepti
CAclubindia
