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 expenses on entertainment, travel, employee welfare and accommodation. The definition of fringe benefits that have become taxable has been significantly extended. The law provides an 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).
- Employee stock option plans (ESOPs) have also been brought under Fringe Benefits Tax from the fiscal year 2007-08.
[edit] See also
- Permanent account number(PAN)
- Indian Revenue Service(IRS)
