Valuation rules - FBT

[Rahul Bagaria]

Mine is a public limited company.CBDT is yet to come up with the new valuation (perquisite)rules.Of the total CTC of the employees, around 25% is in the form of reimbursements on which earlier we use to recover FBT and make the payments.Please suggest how should we proceed now as the government is yet to come up with the new valuation rules.

AI Summary

Company Seeks Guidance on Employee Reimbursements Post-FBT Removal; Awaits New CBDT Valuation Rules A public limited company is seeking guidance on handling employee reimbursements, which constitute 25% of their total cost to company, following the removal of Fringe Benefit Tax (FBT) and pending new valuation rules from the Central Board of Direct Taxes (CBDT). One respondent suggests that without FBT, these reimbursements may not be taxable as employee income, advising to await new rules. Another respondent emphasizes the importance of maintaining clear and complete queries, warns against manipulative reimbursement practices, and encourages sharing detailed information to facilitate effective knowledge exchange in the discussion forum.