Click to play videoNew Delhi: An announcement by the Finance Minister that the Fringe Benefit Tax would be abolished in the Budget was greeted with cheers in offices across the country. But the good news is short-lived.
The Government is all set to impose a tax on perks, which replaces the earlier Fringe Benefit Tax. If you are a part of the salaried class, you can expect to burn a hole in your pocket, paying tax on perks like residential accommodation and conveyance.
But there are some exemptions to the tax.
- Telephone, mobile bill
- Company provided local conveyance
- Entertainment expenses like hosting dinners for clients
- Exemption upto Rs 900 on personal car used for official purposes
But taxes on other perks will have to be borne by you.
- Travelling and tour allowance
- Free food and non-alcoholic beverages provided by the company
- Gifts or vouchers received by the employee
- Reimbursements on club memberships
- Company provided house
The announcement is yet to be made by the Finance Ministry, but will have to be paid with retrospective effect from April 1, 2010.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter and Google+)
displayed with permission. Use of the CNN name and/or logo on or as part of CNN-IBN does not derogate from the intellectual property rights of Cable News Network in respect of them.