Fringe benefits tax (India)

The fringe benefits tax (FBT) was the tax applied to most, although not all, fringe benefits in India. A new tax was imposed on employers by India's Finance Act 2005 was introduced for the financial year commencing April 1, 2005.^[1] The fringe benefit tax was temporarily suspended in the 2009 Union budget of India by Finance Minister Pranab Mukherjee.^[2]

The following items were 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.

See also

• 2009 Union budget of India
• Permanent account number
• Indian Revenue Service (IRS)

References