Exemption of expenditure of employers incurred on the to and fro journeys of the employee from the residence to the office w.e.f. 1/4/2007

Any benefit or amenity in the nature of free or subsidised transport or any such allowance provided by the employer to his employees for journeys by the employees from their residence to the place of work or such place of work to the place of residence shall not form a part of fringe benefits for levy of Fringe Benefit Tax. The provision takes effect from 1st April, 2007 and applies in relation to the assessment year 2007-2008 (previous year 2006-2007) and subsequent years.

Posted in: Dearness Allowance,House Rent Allowance,Pay and Allowances,Traveling Allowance