The dreaded fringe benefit tax is unlikely to be withdrawn in the next year's Budget despite mounting pressure from the apex industry chambers.
FBT was an unpopular tax and withdrawn before the General Elections in 2009
Finance Minister Pranab Mukherjee has announced that Fringe Benefit Tax (FBT) has been abolished. The commodity transaction tax (CTT) has also been abolished. The Goods and Services Tax (GST) will come into effect from April 01, 2010, Mukherjee said.
'Benefits in kind' are the ones which are not included in an employee's salary cheque or wages.
The Confederation of Indian Industry in its budget wish list has urged to government to scrap the fringe benefit tax.
Do you think FBT should be scrapped and India Inc be given alternative choices?
Apoorwa Wagh, vice president, marketing at EFKON India, has mixed feelings about the new budget. But he's excited that the Fringe Benefit Tax has been scrapped. \n"Surely our pockets will be a little heavier now," he smiles.
Finance Minister Pranab Mukherjee on Thursday tabled the Economic Survey for 2008-09 that prescribes doing away with cess, surcharges on taxes, including fringe benefit tax, and sweeping refroms in areas like petrol pricing and financial sector.
The jettisoning of the Fringe Benefit Tax opens a can of. . . questions, mainly, says Ameet N Patel.
48 companies have given stock options since Budget day.
The fringe benefit tax (FBT) was levied on ESOPs in the Union Budget this year and the IT industry is still grappling with the issue of how to factor in the tax.
Finance Minister P Chidambaram on Monday retained both his controversial tax proposal -- the fringe benefit tax and the cash withdrawal tax -- but made modifications to offer some relief to individuals as well as corporates.
The fiscal situation is in a mess, with widespread suspicion that the deficit is much larger than it was claimed to be.
Employee Stock Options (ESOPs) is a significant employer-granted benefit, subject to the perquisite-based taxation system. Employee benefits used to be subject to Fringe Benefit Tax (FBT) earlier. But, now that FBT no longer exists, the earlier perquisite-based taxation has been brought in. So, in a way, this is not a new move but a reversion to the earlier system of taxation.
On the Budget day, when the Finance Minister reads through reams of paper, the common man is often left confused. Worse still, there are a whole lot of numbers and jargons like capital account expenditure and current account deficit that could baffle many.
Recommending an end to all cesses and surcharges on taxes, and free pricing of fertiliser and fuel ahead of the Union Budget for 2009-10, the Economic Survey suggested on Thursday aggressive disinvestment and financial sector reforms to bring the economy back to high growth track.
The abolition of fringe benefit tax will help employees save 3 per cent on their employee stock option plan.
In an hour-long chat on rediff.com on Thursday, DCW chairman Mudit Jain replied to many queries on how Budget affects the common people.
In an hour-long chat on rediff.com on Thursday, founding chairman & managing director of Country Club, India Rajeev Reddy analysed how good is the Budget for the common people.
In an hour-long chat on rediff.com on Wednesday, COO of Dun & Bradstreet, India Kaushal Sampat offered some tips. Here is the transcript:
The removal of the Fringe Benefit Tax (FBT) proposed in the Budget is being regarded as a welcome move for companies and may also provide them scope to restructure employee remuneration, HR experts said.
Excise duty on folders, file covers, manifold business forms & other articles of stationery, of paper or paperboard except notebooks and exercise books is being increased from 4% to 8%.
Pranab Mukherjee touched upon the problems and the initiatives needed to spur Indian Economy, but there is hardly anything on table for the industry to cheer about.
The Finance Minister Pranab Mukherjee on Monday tabled the Economic Survey for 2008-09 that prescribes doing away with cess, surcharges on taxes, including Fringe Benefit Tax, and sweeping refroms in areas like petrol pricing and financial sector.
Your tax burden has just gone up, with the government issuing the new guidelines for taxation of perquisites. Valuation of cars goes through a revision.
The CII on Monday recommended raising personal income tax exemption limit by Rs 50,000, removal of Fringe Benefit Tax and surcharge on corporate tax along with measures to promote investment in the full budget to be presented by the new government in July.
Your tax burden has just gone up, with the government issuing the new guidelines for taxation of perquisites. Valuation of cars goes through a revision.
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