Taxpayers can now adjust the advance FBT paid for the current fiscal against income tax or claim refund as the FBT is no longer in force.
The FBT–the tax on the added benefits or perks given by the employer to the employee — was abolished by Finance Minister Pranab Mukherjee in the the Finance Act 2009 with effect from assessment year 2010-11. The tax was introduced in 2005.
The Central Board of Direct Taxes have decided that any instalment of advance tax paid in respect of fringe benefits for AY 2010-11 shall be treated as advance income tax paid by assessee for AY 2010-11.
The assessee can adjust such sum against its advance tax obligation in respect of income for FY 2009-10. The unadjusted amount, if any, may be claimed as refund in the return of income for AY 2010-11 to be filed later this year.
Employees enjoying perks such as chauffeur-driven cars, rent-free accommodation, club memberships, credit cards and meal vouchers could find the next four months a little too harsh on their wallets as they may have to cough up the entire annual tax on such benefits during this period. The government is set to announce the norms for [...]
Currently, certain prescribed fringe benefits provided by an employer to his employees are liable to FBT in the hands of the employer. Such fringe benefits are not included within the scope of ‘perquisites’ as defined in section 17. As FBT will now be abolished, ‘perquisites’ will include the following: 1. Presently, FBT is levied on [...]
No change in Corporate Taxes – MAT to be increased to 15% Sun-Set Clauses for deduction of export profits under Income Tax to be extended by one more year Donation to Electoral Trusts to be allowed 100% deduction The Finance Minister, Shri Pranab Mukherjee has proposed to abolish Fringe Benefit Tax on the value of [...]
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