Is Medical Alowance Taxable To Employer Under FBT ????? - CiteHR
Subroto50
Ir- Admin. Site Manager
Dhanesh Kumar
Recruitment & Payroll
Skh.1983
Hr Officer
Blissabhay
Human Resources
Abdullahyousuf
Hr Executive / Consultant
+1 Other

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Hi Seniors,
Is Medical Allowance & Uniform Allowance comes under reimbursement & is taxable for employer in mode of FBT??????
Please guide me that what are the heads of salary under which an employee can get exemption ?????
As of now we have HRA, Uniform Allowance, Conveyance, LTA & Special Allowances in our structure.
But i want to revise the structure as too much of tax burden is coming on employees.
:no:Please help.
Regards
Shikha Jain

Hi Shikha
In my view, Med. Allowance and Uniform allow. reimbursement should not come under FBT coz its a part of salary not a benefit which the company is providing apart from salary to its employees.
As far as ur salary structure is concerned, i believe you have choosen the right salary components in ur present structure. if any kind of incentive thing u cud include, this will reduce the tax burden.
Regards
Dhanesh

Hi Dhanesh,
Thanks for your immediate response.
I was going through the definition of FBT on net as per the below given link:
What is fringe benefit tax?
where i found that any kind of fixed component paid under salary is taxable.
Also as per my knowledge incentives are also taxable.
If you have any link related to this please forward it.
Regards
Shikha jain

Hello Sikha, If the medical allowance headed as "Medical reimbursemt" so that should not be taxable if any employee get it as a "Medical Allowance" so that is taxable.
Hi shikha, medical allowance as part of ctc, is non-taxable to employee upto 15000/annum on submissin of bills. If emp not submit bills, can be paid after tax.
Hi Shikha ,
Medical reimbursement is non taxabale subject to submission of bill ( max Rs.15000 /-pa ) this can be a part of CTC ...you can pay in advance with monthly pay ( but will have to mention in offer / appt letter ) bills need to be submitted by end of year non submission of bill will attract dedn of income tax
regards,
pooja

HI ALL,
as far as i know, FBT is basically for only some particular grade of employees. I mean its the grade of employees whose CTC is more than a limit which is fixed by the company according to its policies.
I think it include things like car Charges or taxi charges, Driver salary etc.
Please do add if you have any inputs...........
Thanks in advance :o:o:o
Regards
Yousuf

Hi, FBT charged on employers. If a car, petrol amt, driver salary, car maintenance are part of ctc, car is used to perform official duties, and petrol, driver salary, car maintenanbe bills are reimbursed by the employer, EBT will be crarged on employer. Now in recession time, employer can recover FBT from employes.
Medical bill reimbursement is non taxabale subject to submission of bill max Rs.15000 /-pa. but when it come in salary sheet its also taxable. Thanks .subroto
HI paayal
Any amount paid to employees on a monthly basis are treated as allowance and is taxable. Even if the employee submits the bills for Medical allownace at the end of the year, it is treated as taxable. Simple reason being reimbursment is an amount which employee spent and then claim. Where as in this case a fixed amount is paid every month to employees.


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