Dear HR Professionals,
This is really important and urgent. Hope to get an early response from your end.
As you are aware about the Fringe Benefit Tax applicable on the Reimbursements of the employees. My query is can the same be reflected in the Appointment Letters of the employees or their salary breakups as a part of the CTC.
For Instance: If an employees salary is 3 Lacs per annum (His CTC). And the total amount of his Fringe Benefit Tax (FBT) on his reimbursements say come to Rs. 5000/-. Can we reflect the same in his salary breakup and appointment letter.
Any other information on the same is most welcome.
It would be great if you can mark your replies at:
Thanx and Regards,
Kavita Yadav
HR - Executive
From India, New Delhi
This is really important and urgent. Hope to get an early response from your end.
As you are aware about the Fringe Benefit Tax applicable on the Reimbursements of the employees. My query is can the same be reflected in the Appointment Letters of the employees or their salary breakups as a part of the CTC.
For Instance: If an employees salary is 3 Lacs per annum (His CTC). And the total amount of his Fringe Benefit Tax (FBT) on his reimbursements say come to Rs. 5000/-. Can we reflect the same in his salary breakup and appointment letter.
Any other information on the same is most welcome.
It would be great if you can mark your replies at:
Thanx and Regards,
Kavita Yadav
HR - Executive
From India, New Delhi
Hi kavita
I have been seeing this topic for sometime and was thinking that some more knowledgeable person might answer to it... as i have not gone much deeper into FBT thing..
I don't think that the same can be included in the CTC as far as appointment letter is concerned, though actually you need to keep it in mind while calculating the cost of the employee.
The other way out is, increase the salary and cut on the fringe benefit. That way employee would have more control over his taxes and would manage his investments / savings / taxes accordingly..
Paying 30% as FBT would anyway be more than the Income TAX in most of the cases (specially with investments in Tax saving bonds / insurance / home loans etc.)
This is what is happening at our company.. Most of the Fringe benefits have been cut off and the salaries have been increased in that proportion
Ajmal Mirza
From India, Ahmadabad
35I have been seeing this topic for sometime and was thinking that some more knowledgeable person might answer to it... as i have not gone much deeper into FBT thing..
I don't think that the same can be included in the CTC as far as appointment letter is concerned, though actually you need to keep it in mind while calculating the cost of the employee.
The other way out is, increase the salary and cut on the fringe benefit. That way employee would have more control over his taxes and would manage his investments / savings / taxes accordingly..
Paying 30% as FBT would anyway be more than the Income TAX in most of the cases (specially with investments in Tax saving bonds / insurance / home loans etc.)
This is what is happening at our company.. Most of the Fringe benefits have been cut off and the salaries have been increased in that proportion
Ajmal Mirza
From India, Ahmadabad
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf