Fringe Benefits Tax (India)
Encyclopedia
Fringe Benefits Tax was the tax applied to most, although not all, fringe benefits. A new tax was imposed on employers by India
's Finance Act 2005 was introduced for the financial year commencing April 1, 2005. The Fringe Benefit Tax is abolished in the Finance Bill of 2009 by Finance Minister Pranab Mukherjee
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The following items were covered:
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's Finance Act 2005 was introduced for the financial year commencing April 1, 2005. The Fringe Benefit Tax is abolished in the Finance Bill of 2009 by Finance Minister Pranab Mukherjee
Pranab Mukherjee
Pranab Kumar Mukherjee is the current Finance Minister of India and leader of the current Lok Sabha.Mukherjee is a senior member of the Cabinet Committees on Economic Affairs, Infrastructure, Parliamentary Affairs, Political Affairs, Prices, Security, Unique Identification Authority of India,...
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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.