ÿþ <html> <head> <title>IndiaTaxes.com - Fringe Benefit tax introduction</title> <META NAME="keywords" CONTENT="tax,benefits,fringe,tax benefits,act?,employees,perquisites,fringe benefit,provided,fringe benefit tax,2005,benefit tax,employee where,where,practical,attributed,employee,benefit,finance,directly"> <meta name="DESCRIPTION" content="IndiaTaxes.com - INTRODUCTION The Finance Act? 2005 introduced the concept of Fringe Benefit Tax under the purview of the Income Tax Act? 1961 from sections 115"> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> <link rel="StyleSheet" href="/information/scripts/dtree.css" type="text/css" /> <link rel="StyleSheet" href="/information/scripts/pagestyle.css" type="text/css" /> </head> <body topmargin=0 leftmargin=0 rightmargin=0 bottommargin=0> <script type="text/javascript" src="/information/scripts/topbar.js"> </script> <table class="bgbody" border=1 cellpadding=0 width="100%" valine=top height="572"> <tr style='height:17.25pt' > <td valign=top rowspan=2 width="200"> <div style="width:220px; height=100%; overflow:auto;"> <table><tr><td> <script type='text/javascript' src="/information/scripts/dtree.js"></script> <script type='text/javascript' src="/information/scripts/fbtindex.js"></script> </td></tr> </table> </div> </td> <td width="100%" height="25" class="bgtitle"> <p align=center><font face="Courier New" size="3"><b>INTRODUCTION</b></font> </p> </td> <td rowspan="2" height="568" valign="top"> <script type="text/javascript" src="/information/scripts/google.js"> </script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script>&nbsp;&nbsp;&nbsp; </td> </tr> <tr> <td width="100%" valign=top height="539"> &nbsp; <div align="center"> <center> <table border="0" width="95%" cellspacing="0" cellpadding="0" height="320"> <tr> <td width="100%" height="320" valign="top"> <p class="MsoNormal" align="justify"><span style="font-size:12.0pt" class="IntenseReference"><font size="2" face="Verdana">The Finance Act 2005 introduced the concept of Fringe Benefit Tax under the purview of the Income Tax Act 1961 from sections 115W to 115 WL.&nbsp;</font></span></p> <p class="MsoNormal" align="justify"><span style="font-size:12.0pt" class="IntenseReference"><font size="2" face="Verdana"><br> Finance Act 2005 has adopted a bifacial approach for the taxation of fringe benefits:&nbsp;</font></span></p> <ol> <li> <p class="MsoNormal" style="margin-bottom:12.0pt" align="justify"><span style="font-size:12.0pt" class="IntenseReference"><font size="2" face="Verdana"><u><b>Perquisites which can be directly attributed to the employees:</b></u><br> &nbsp;<br> Such perks will continue to be taxed in the hands of the employees in accordance with the existing provisions of section 17(2) and subject to rule 2A, 2B and 2BB, which have been dealt in a detailed manner under the head perquisites of the salaries module.</font></span></li> <li> <p class="MsoNormal" style="margin-bottom:12.0pt" align="justify"><span style="font-size:12.0pt" class="IntenseReference"><font size="2" face="Verdana"><u><b>Perquisites which cannot be directly attributed to the employee or where because of practical impossibilities it is not feasible to tax the benefits in the hands of the employee:</b></u><br> &nbsp;<br> Where it is not possible to tax the benefits on account of non feasibility/ practical problems to tax benefits the Fringe Benefit Tax comes into picture. This tax has to be paid by the employer on the value of such benefits provided or deemed to have been provided to the employees.</o:p> </font></span></li> </ol> <p>&nbsp; </td> </tr> </table> </center> </div> </td> </tr> <tr><td align=center colspan=3><script type="text/javascript" src="/information/scripts/dis.js"></script></td></tr> </table> </body> </html>