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New Fringe Benefit Tax Rules E-mail
World - India
Wednesday, 23 December 2009 23:39
This Friday,the Central Board of Direct Taxes is issuing a notification regarding Fringe Benefit Tax (FBT) on perks.According to new rules of taxation for the financial year 2009-10,government has abolished the Fring Benefit Tax (FBT).Now you have to pay the tax on your perks provided by your employer.In last 4 months of this financial year,Tax deduction will be done on all your perks for the entire year.So,your salary slip will be slimmer for next 4 months.

According to the Central Board of Direct Taxes,now perks like company car, fuel allowance, driver, accommodation, conveyance ,fees for kids and  company funded travel are taxable.Earlier,employers were paying the tax for these perks and were recovering it from employees.Now, the employees will directly pay the tax.
 
 New FBT Rules
 
PERK TAX PRINCIPLE
Employer-owned accommodation  Depending on city, 7.5-15% of basic salary added to income
Leased/rent paid by employer Actual rent, or 15% of salary, whichever is lower added to income and taxed
Company-owned car for personal use Actual expenses, driver’s salary added to income and taxed*
ESOPs Difference of mkt value & grant price added to income & taxed
Interest-free/concessional loan (except medical reasons) Interest component to be added to income
Salary to sweeper, gardener, PA Added to income
Gas, electricity, water expenses Added to income
Free/concessional education Added to income
Company sponsored vacation Added to income
Gift/vouchers of over Rs 5,000 Added to income
Club membership/annual fees on credit card (other than official) Added to income

*For part-official, part-personal use depending on engine capacity, up to Rs3,300/month added to income

 
 More details regarding FBT..

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    Y Srinivas Rao  - Pringe benefits added to incom   |2009-12-29 05:28:15
    Actually it is very difficult to every employee
    because now a day living cost
    is very high meanwhile FBT tax is very burden to employee. better is better as
    earlier rule
    Reply
    Sweta  - food voucher under perks tax   |2010-01-27 05:41:49
    Can anybody let me know the tax liability by how much in case of food
    voucher/sodexo under new perks rule in the hand of employees please.
    Reply
    Saurabh  - Query regarding the taxation of stocks   |2010-05-22 18:04:08
    regarding the stocks, how would the taxation work out?
    During the sell of
    shares, FMV of the shares is lower than the FMV of the shares at the time of
    purchase of stocks, how would the c...
    Reply

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