Medical Reimbursement Up to ₹15,000 Not Subject to FBT: Madras HC

MRF Ltd. Vs DCIT (Madras High Court) The Madras High Court held that medical reimbursements up to ₹15,000 per employee per annum are not liable to Fringe Benefit Tax (FBT) in the hands of the employer. The case arose after the Assessing Officer levied FBT on medical reimbursements paid by the assessee to its employees during Assessment Years 2006-07, 2007-08, and 2008-09, relying on CBDT Circular No. 8/2005. The reimbursements, being below ₹15,000 per employee, had been excluded from taxation in the hands of employees. The assessee contended that under the proviso (v) to Section 17(2) of t...