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1. Fringe Benefit Tax—An Introduction :"[ Assessments of 'Fringe Benefits' ]

The Finance Act, 2005 (clause 37) has introduced a new tax called ‘Fringe Benefits Tax’ (FBT) by inserting new sections 115W to I15WL in the Income Tax Act, 1961. This Tax has been levied on specified employers with effect from previous year 2005-06, i.e., Assessment year 2006-07. It is levied on perquisites or fringe benefits provided by an employer to his employee, in addition to the cash salary or wages paid. The ‘fringe benefit tax’ is already prevalent in the United States, the United Kingdom, Canada, Australia, New Zealand, Japan and some other countries.

 

As we know that employer often provides many facilities/benefits to employees in addition to cash salary and allowances. The cost incurred by employer on providing these benefits to employees is also an allowed expense while calculating business income of the employer. Under Income Tax Act, 1961 these benefits/facilities are known as Perquisites and are taxable in the hands of employees as per the provisions of section 17(2). For the purpose of taxability as income in the hands of employees, these perquisites are valued as per rule 3 of the Income Tax Rules, 1962. On analysing section 17(2), we can find the following three categories of perquisities

 

(i)         Perquisities exempted for all employees.

 

(ii)        Perquisities taxable for all employees.

 

(iii).      Perquisities taxable only in case of specified employees.

 
 
 

 
More Topics... @ FBT
Assessment of Fringe Benefit Tax (FBT) - An Introduction
Rationale And Meaning Of ‘Fringe Benefits Tax’ : Assessments of ' Fringe Benefits'
Perquisites Taxable In The Hands Of Employees V/S Fringe Benefits Tax : Assessments of ' Fringe Benefits'
Feature Of Fringe Benefits Tax : Assessments of ' Fringe Benefits'
Meaning Of Certain Expressions [ Section 115W] : Assessments of ' Fringe Benefits'
Charge Of Fringe Benefit Tax [Section 115WA ] : Assessments of ' Fringe Benefits'
Fringe Benefits [Section 115WB] : Assessments of ' Fringe Benefits'
Some Examples of Fringe Benefits : Assessments of ' Fringe Benefits'
Some Examples Of Benefits Which Are Not Fringe Benefits : Assessments of ' Fringe Benefits'
Value Of Fringe Benefits [Section 115WC] : Assessments of ' Fringe Benefits'
Advance Tax In Respect Of Fringe Benefits : Assessments of ' Fringe Benefits'
Return Of Fringe Benefits [Section 115WD] : Assessments of ' Fringe Benefits'
Assessment Of Fringe Benefits [Section 115WE ]
Best Judgement Assessment [Section 115WF ] : Assessments of ' Fringe Benefits'
Time Limit - Completion Of Assessment U/s-115WF-Sec-153 Amendment
Fringe Benefits Escaping Assessment [Section 115WG] : Assessments of ' Fringe Benefits'
Section 115WH :Issue Of Notice Where Fringe Benefits Have Escaped Assessment
Payment Of Fringe Benefit Tax [Section 115WI ] : Assessments of ' Fringe Benefits'
Advance Tax In Respect Of Fringe Benefits [Section 115WJ ] : Assessments of ' Fringe Benefits'
Interest For Default In Furnishing Return Of Fringe Benefits [Section 115WK]
Computation Of Interest U/S 115WK—Amendment In Section 140A(1A)]
Claim Of Refund Under Fringe Benefit Tax [Section 238(1A)]
Period Within Which Refund Of Tax Paid Under Fringe Benefits Tax Can Be Claimed [Section 239(2)] : Assessments of ' Fringe Benefits'
Interest On Refund Under Fringe Benefit Tax [Section 244A(1) and (3)] : Assessments of ' Fringe Benefits'
Appeal To Commissioner (Appeals)[Section 244A(1)(AA)] : Assessments of ' Fringe Benefits'
Penalty For Non Complying With The Notice [Section 271(1)(b) & (d)] : Assessments of ' Fringe Benefits'
Penalty For Failure To Furnish Return Of Fringe Benefits [Section-271FB] : Assessments of ' Fringe Benefits'
Penalty For Non-Furnishing Of Quarterly Return U/S 206(a) [Section 272a(2)] : Assessments of ' Fringe Benefits'
Prosecution For Not Furnishing Of Return U/S 115WD(1) or u/s 11WH(1) [Section 276CC] : Assessments of ' Fringe Benefits'
Abetment Of False Return Filed U/s-115WD(1) or U/s 115WH(2)[Section-278] : Assessments of ' Fringe Benefits'
Amendment Of Section 119 [Section-115WL] : Assessments of ' Fringe Benefits'
 
 
 
 
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