Whether payment of leave travel concession or assistance to employees is liable to FBT?
The value of any travel concession or assistance received by an employee normally fall within the meaning of ‘salary as defined in clause (1) of section 17 of the Income-tax Act. These benefits are taxable under the head ‘Salaries’ subject to the exemption under clause (5) of section 10 of the Income-tax Act. Accordingly, it would not be liable to FBT. However, if the leave travel concession/assistance is not included in ‘salary’ as defined in section 17 will be classified as an expense for the purposes referred to clause (F) of sub-section (2) of section 115WB and will accordingly be liable to FBT. 45. How will the value of a free air ticket provided by an employer engaged in the business of carriage of passengers or goods by aircraft be taken e.g., normal fare or concessional fare e.g. apex fare or senior citizen’s concessional fare or the actual cost of the ticket to the employer? In terms of the provisions of clause (a) of sub -section (1) of section 115WC, the value of a free or c
