Appliacbility of FBT

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Medical reimbursement to an employeed exceeding Rs. 15000 for treatment in an approved hospital is not taxable in hands of employees. Whether it will be taxable as FBT in hands of employer as employee welfare?

AI Summary

Medical Reimbursements Over Rs. 15,000 Taxable for Employers as Fringe Benefits, Says CBDT Circular No. 8/2005 A query was raised regarding the tax implications of medical reimbursements exceeding Rs. 15,000 for treatment in an approved hospital. While such reimbursements are not taxable for employees, the question was whether they are subject to Fringe Benefit Tax (FBT) for employers as employee welfare. The response referred to question 69 of Circular No. 8/2005 from the Central Board of Direct Taxes (CBDT), indicating that this amount is indeed subject to FBT for employers.