RE:FB
by Amitabh on Apr 27, 2007 10:15 PM Permalink
FBT or Fringe Benefits Tax is a tax payable by the employer on certain perquisites or fringe benefits provided to emplyees.It is to be paid even if the emplyer does not have taxable income.Some of the benefits that come under this tax are free or concessional tickets provided to the emplyees or their family members for private journeys,contribution to approved superannuation fund,use of health club,gifts,scholarship,entertainment expenses,telephone provided to emplyees,etc.For these purquisites,the emplyee does not have to pay any income tax.For different perquisites,different percentages have been specified for computation of fringe benefits.Once the fringe benefits are computed,tax thereon is levied at the rate of 30 per cent plus surcharge and cess.The emplyees benefit by FBT in the sense that they do not have to pay tax on such benefits.It is the employer who pays.For more details,pl refer to Sec 115W,115WB and 115WC of income Tax act 1961
