Fringe Benefits Tax (India)

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Fringe Benefits Tax (FBT) is the tax applied to most, although not all, fringe benefits. A new tax was imposed on employers by India's Finance Act 2005 introduced for the financial year commencing April 1, 2005.

The following items are covered:

Employer's expences on entertainment, travel, employee welfare and accommodation. The definition of fringe benefits that have become taxable has been significantly extended. The law provides the exact list of taxable items.
Employer's provision of employee transportation to work or a cash allowances for this purpose.
Employer's contributions to an approved retirement plan (called a superannuation fund).