Dear All,
I work in IT and avail FBT. I have a question regarding this. The amount that the company pays me as FBT is not reflected in the monthly salary slip. The finance department says it's not part of the taxable salary. For example, if the CTC is 6L per annum and a person avails FBT of 10k per month (1.2L per annum), then the salary slip shows 6L - 1.2L = 4.8L. However, the increment letters etc. mention the CTC as 6L. Additionally, the salary is credited on the last working day of every month, but the FBT part is credited on the 7th of the following month (following the salary month).
Now, my question is, during a job change, does it matter that my CTC is, say, 6L, but the salary slips show 4.8L? Even though the remaining component gets auto-credited to my bank A/C as 'Reimbursement,' and all the increment letters etc. correctly mention the CTC amount?
Thank you in advance for your valuable feedback.
Kind Regards,
Deepak
From India, Delhi
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I work in IT and avail FBT. I have a question regarding this. The amount that the company pays me as FBT is not reflected in the monthly salary slip. The finance department says it's not part of the taxable salary. For example, if the CTC is 6L per annum and a person avails FBT of 10k per month (1.2L per annum), then the salary slip shows 6L - 1.2L = 4.8L. However, the increment letters etc. mention the CTC as 6L. Additionally, the salary is credited on the last working day of every month, but the FBT part is credited on the 7th of the following month (following the salary month).
Now, my question is, during a job change, does it matter that my CTC is, say, 6L, but the salary slips show 4.8L? Even though the remaining component gets auto-credited to my bank A/C as 'Reimbursement,' and all the increment letters etc. correctly mention the CTC amount?
Thank you in advance for your valuable feedback.
Kind Regards,
Deepak
From India, Delhi
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Actually, FBT will not affect your CTC because FBT is paid by the company only - they don't deduct the salary from anyone. For instance, if the company agreed to pay a conveyance of 1200 per month, it means the company should pay the employee 1200 per month, and 1200 * 20% = 240 * 33.99% = 81.00 should be paid for FBT. This shouldn't affect the employee's payment.
Regards,
E. Shankar
From India, Madras
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Regards,
E. Shankar
From India, Madras
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Hi Folks,
Few of the companies deduct FBT from employees' salary only. The company is giving a benefit to employees by introducing "Reimbursements". Why would the company pay for the FBT?
Deepak, in this case, the reimbursement details are never mentioned on the salary slip. There is a separate reimbursement slip that should be issued which has all the details of the reimbursements you are getting as a part of your salary. This is a good chance for you to probably propose the idea of the reimbursement slip. Many companies are doing this.
Regards,
Chanda
From India, Delhi
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4Few of the companies deduct FBT from employees' salary only. The company is giving a benefit to employees by introducing "Reimbursements". Why would the company pay for the FBT?
Deepak, in this case, the reimbursement details are never mentioned on the salary slip. There is a separate reimbursement slip that should be issued which has all the details of the reimbursements you are getting as a part of your salary. This is a good chance for you to probably propose the idea of the reimbursement slip. Many companies are doing this.
Regards,
Chanda
From India, Delhi
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I think the company has given you an appointment letter where CTC has been mentioned as Rs. 6.00 lakh. The bifurcation of Rs. 4.80 lakh and Rs. 1.20 lakh is after joining. I believe the company is deducting FBT on reimbursement and paying the balance amount to you. You can very well explain this at the time of your new joining, stating that the CTC is Rs. 6.00 lakh and providing supporting details of Rs. 4.80 lakh and reimbursement of Rs. 12,000 - FBT of Rs. 8,157 deducted by the company.
Hope you are clear now.
Thanks,
Rajendra Zanpure
From India, Mumbai
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Hope you are clear now.
Thanks,
Rajendra Zanpure
From India, Mumbai
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