Fringe Benefit Tax on Incentives to employees

iriskp

We are a DSA of an MNC Bank and have a Sales Employee strength of 60 people.
The Salary Component is mainly divided in three parts i.e BASIC, TA, and TELEPHONE Allowance.
Every month some employees are eligible for Incentives based on their performance which is paid to them with their salary.
Can you please suggest what is my liability towards FBT and is FBT also levied on the TA and Telephone Allowance we provide to our employees.
What is the way to reduce this liability to the minimum ?

iriskp

Is this what we call a Community, no one is there to help and suggest

ramargha

We are a DSA of an MNC Bank and have a Sales Employee strength of 60 people.
The Salary Component is mainly divided in three parts i.e BASIC, TA, and TELEPHONE Allowance.
Every month some employees are eligible for Incentives based on their performance which is paid to them with their salary.
Can you please suggest what is my liability towards FBT and is FBT also levied on the TA and Telephone Allowance we provide to our employees.
What is the way to reduce this liability to the minimum ?

Hi,
Travelling Allow upto Rs.800 p.m. is exempt from tax in the hands of employee. It doesn't attract FBT
Telephone allowance will attract FBT if not taxed in the hands of employees.
The best way is to provide HRA to the employees. The employees can avail exemptions and it doesn't attract FBT.

Regards
Ram