Buy custom Impact of FBT in India
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| Topic: |
Business
|
| Number of pages / Number of words: |
4 / 860 |
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His total tax liability increases from Rs 66,932.40 to Rs 83,456.40 a change of Rs 16,524.
Table 2
Total structure pre-FBT (Rs) Taxable pre-FBT (Rs) Total structure post-FBT (Rs) Taxable post-FBT (Rs)
Basic 240,000 240,000 276,000 276,000
HRA 120,000 120,000 138,000 138,000
Conveyance reimbursement 36,000 0 0 0
Transport allowance 9,600 0 9,600 0
Telephone reimbursement 12,000 0 0 0
Newspaper/ Magazine reimbursement 6,000 0 0 0
LTA 36,000 0 36,000 0
Medical reimbursement 15,000 0 15,000 0
Bonus 25,400 25,400 25,400 25,400
Total 500,000 385,400 500,000 439,400
Tax due without considering any savings 66,932...
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They will have to keep their outflow in terms of employee remuneration and operational expenses in check", says an HR consultant.
He goes on to add, "The days of mutual adjustments and accommodations between employers and employees over compensation packages are well and truly over. The FBT brings forth a situation where the two must negotiate as to who will take the call...
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