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  Income Tax Assessment Year 2007 - 2008 onwards India - Fringe Benefit Tax (FBT) Changes As Per Union Budget 2006 Benefit From  A Free Kaytek Business Assistance Service |
Consulting
Tax
Fringe Benefit Tax
Changes for Assessment year 2007 - 2008 onwards
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Income Tax Assessment Year 2007 - 2008 onwards India - Fringe Benefit Tax (FBT) Changes As Per Union Budget 2006 Benefit From A Free Kaytek Business Assistance Service |
 For All Sectors Exclusion of the expenses incurred by the employer on Free or Subsidised Transport or any such allowance for employees between place of work and residence of vice-versa for the purposes of FBT computation. Value of Fringe Benefit in the form of ‘tour and travel’ at 5 per cent instead of 20 per cent as per earlier year. Exclusion of the expenses incurred on Brand ambassador and Celebrity endorsement for the purposes of FBT computation. |
For All Sectors A threshold of Rs. 100,000 (1 Lakh) under section 115WB(1)(c) so that an employer's contribution to an approved superannuation fund in excess of Rs.100,000 per year per employee to attract FBT. This threshold of Rs 1,00,000 would be in addition to the already existing section 80C exemption up to Rs.100,000 for contribution by an employee to an approved superannuation fund. Hence, there would be a tax-exempt contribution up to Rs.200,000 per year for the benefit of an employee as per the above 2 sections. |
Specific Industry Sectors Pharmaceutical and Medical Equipment Sectors Exclude the expenses on free samples of medicines and of medical equipment distributed to doctors for the purposes of FBT computation. Airline companies and shipping industry sectors Value of Fringe Benefit in the form of ‘hospitality’ and ‘use of hotel boarding and lodging facilities’ at 5 per cent instead of 20 per cent as earlier years. This cannot be construed to be official Taxation Advice. Kindly consult your Tax Attorney or Chartered Accountant for details of the same. |
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