Fringe Benefit Tax
(Querist) 21 April 2008
This query is : Resolved
Hope you all are doing well.
I have a query regarding "Fringe Benefit Tax".
There is a component in my salary which is "Medical Allowance". For which I submit my bills to the employer.
My employer is deducting tax under the head FBT.
My query is, Am I liable to pay FBT from my pocket or is my employer liable and he is illegally deducting my tax.
Please enlighthen me on this.
(Expert) 21 April 2008
As per the provisions of Income tax Act, medical reimbursement upto Rs 15000/- is subject to Fringe benefit Tax in the hands of Employer and He cannot charge the same from the employee.
But if the reimbursement amount exceeds Rs 15000/- then amount exceeding 15000/- would be taxable in the hands of employee.
And excess amount is not subject to FBT.
Hope the above will suffice
(Expert) 23 April 2008
No FBT is liability of company employee can not deduct the same from employee’s salary
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