| Question And Answer | |
|---|---|
| Subject: | Flexi-Benefit Claiming eligibility |
| Category: | Income-Tax |
| Querist: | Kalpesh Chauhan |
| Answered by: | Research Team |
| Tags: | Flexi-Benefit, perquisites |
| Date: | July 16, 2023 |
Flexi-Benefit Claiming eligibility. Is FBP pro-ration (based on employee attendance, date of joining, date of relieving) applied on all types of flexi-benefit components (annual components/quarterly components/ half-yearly components/monthly components). What is the income tax section that governs the FBP rules and regulations for claiming and planning and recovery in case of claimed ineligible FBP benefit.
Flexi Benefit Plan is governed under the section 17 (2) of the Income -Tax Act, 1961. The value of perquisite provided through FBP to an employee is taxable at the hands of an employee. If an employee claims ineligible FBP benefits, the recovery of tax and related consequences may be governed by provisions under Section 192 of the Income -Tax Act. Section 192 deals with the deduction of tax at source from salaries.