What is Fringe Benefit Tax?
Fringe Benefit Tax (FBT) was a tax levied in india from 2006 to 2009. It was paid by the companies in lieu of benefits they offered to their employees in addition to the compensation / salary. The tax was levied on benefits to the employees such as expenses on entertainment, travel, employee welfare, accommodation, transport , tuition fee, subsidized meals etc. It also included Employee stock option plans (ESOPs) from fiscal year 2007–08. The tax was paid by the companies additional to the income tax. Fringe Benefit Tax was abolished in India through the Finance Act, 2009.
Anonymous
September 10, 2010 at 11:22 amfringe benefit means non wage compensation which are given to employees by their company. Please illustrate which wages are included in this??? and how the the tax counted???
AJAY JAISWAL
November 6, 2010 at 4:35 amFringe benefits are compensations made to an employee beyond the regular benefit of being paid for their work. Some fringe benefits are fairly standard, such as offering a few days of sick time or paid vacation time. Others can be significantly greater, and more rare. Key executives in large companies might also enjoy fringe benefits like use of time-share condominiums, paid continuing education, use of a company jet, use of a company credit card, discounted or free health club memberships, and a significant amount of paid vacation.