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Income-Tax On: Fringe Benefits

This document summarizes India's income tax on fringe benefits for the assessment year 2008-09. Key points include: - Fringe benefits tax (FBT) is levied on the value of perquisites or fringe benefits provided to employees by their employer. - Employers subject to FBT include companies, firms, associations of persons/business organizations, and local authorities. Certain organizations are exempt from FBT, including individuals, Hindu Undivided Families, and certain trusts. - For AY 2008-09, FBT is levied at a rate of 30% of the value of fringe benefits plus applicable surcharges. FBT is payable regardless of whether the employer pays income tax. FBT

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23 views8 pages

Income-Tax On: Fringe Benefits

This document summarizes India's income tax on fringe benefits for the assessment year 2008-09. Key points include: - Fringe benefits tax (FBT) is levied on the value of perquisites or fringe benefits provided to employees by their employer. - Employers subject to FBT include companies, firms, associations of persons/business organizations, and local authorities. Certain organizations are exempt from FBT, including individuals, Hindu Undivided Families, and certain trusts. - For AY 2008-09, FBT is levied at a rate of 30% of the value of fringe benefits plus applicable surcharges. FBT is payable regardless of whether the employer pays income tax. FBT

Uploaded by

9986212378
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

INCOME-TAX ON

FRINGE BENEFITS

The employer provides certain perquisites or fringe benefits. Certain perquisites taxable in the hands of employees. W.e.f A.Y 2006-07 Chapter XII-H. FBT shall be levied on the employer on the value of such benefits provided or deemed to have been provided to the employees.

Employer means
AOP/BOI a firm A company A local authority

Who is not liable to pay FBT


An Individual HUF A person whose income is exempted u/s 10 (23c) ex.PMNRF,PMSF,HOSPITAL.INSTITUTION etc. A person who is registered u/s 12AARegistration of trust A political party

A person who is not an employer. A person who has no employee based in India. CHARGE OF FBT FOR THE A.Y 2008-09 FBT-30% + Surcharge if any +3% EC on the amount of tax & surcharge The FBT shall be payable by the employer even he is not liable to pay tax on his total income.

Any sum paid on account of FBT shall not be allowed as a deduction in computing the income. RATES OF SURCHARGE FOR THE A.Y 2008-09. AOP/BOI@10%,if FB exceed 10 lakh rupees. Firm, domestic company @10%. Non-domestic company @2.5%

FRINGE BENEFITS
Expenses on Entertainment - 20% Expenses on Hospitality - 5% &20% Expenses on Conferences - 20% Expenses on sales promotion including publicity20% Expenses on employees welfare -20% Expenses on conveyance- 5 & 20% Expenses on use of Hotel,boarding & lodging facilities - 5 & 20% Motor cars - 5 & 20%

Air crafts nil & 20% Telephone -20% Guest house -20% (A.Y 2009-10 ) Festival celebrations -50% (20% 2009-10) Expenses on club -50% Gifts 50% Scholarships -50% Tour & travel including foreign travel -5%

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