India Income Tax Made Simple

Archived; click post to view.
Excerpt: If the company is providing transportation facility to its employees for commuting from Home to office & back is it covered under FBT if it is then what is the percentage.Bhagya, BangloreThe answer to your question is given under Answer 104 of CBDT Circular No 8/2005 dated 29/8/2005 which is given as underWhether expenditure incurred by the employer for the purposes of providing free or subsidized transport for journeys to employees from their residence to the place of work or such place of work to the place of residence would attract FBT ?104. The free or subsidized transport provided…

Archived; click post to view.
Excerpt: If employee purchases second hand car from his employer then it to be treat as perquisites and come under FBT and what rate tax or FBT employee or employer has to pay?Priti, Mumbai The second hand car given to employee at concessional price, can be termed as perquisite u/s 17(2)(viii) of the I T Act taxable in employees hand. Therefore, it is outside the scope of Fringe Benefit Tax .The method of determination of value of the perquisite is given in section 17(2)(viii) itself in following words The value of benefit to the…

Archived; click post to view.
Excerpt: What is the liability of F.B.T in the case of contractor who is coming u/s 44AD.?Vishal Jaiswal , VaranasiFBT is a tax on the fringe benefits made available by the Employer to employee.Fringe Benefit Tax has no relationship with kind of income a person is earning. In fact , even if one does not earn income , one may be liable to FBT.Therefore , you should see whether the contractor is falling under one of the following kind of Employers who are only are liable to Fringe Benefit TaxCompanyFirm or AOP or Body Of IndividualsTrustLocal AuthorityArtificial Juridical AuthoritySo…

Archived; click post to view.
Excerpt: Can you please provide the details of exemption limits on meals provided by employer as well as meal coupons issued by Sodexho. I am informed that there is a provision for getting exemption of Rs 2500 per month under this. Can you please explain with the relevant income tax rule under which this is allowed. P V Gopi Ramanan ,Hyderabad You have not stated whether the employer is a company or a firm or Individual or HUF. From FY 2008-09 , the tax treatment of such facility enjoyed by employee depends on whether the Employer is…

Archived; click post to view.
Excerpt: We are having a Software Outsourcing IT enabled Company. This is approved by the Software Technical Park of India (STPI), Govt. of India and it is a STPI Unit. We are completely exempted from income tax since all our income is on foreign currency and no income in Indian currency as per rule.Now will you please let me know whether the Fringe Benefit Tax will apply to our Company since we are completely exempted from tax. P. Natarajan In my opinion , fringe benefit tax provision is applicable on you .This is on account of…

Archived; click post to view.
Excerpt: Whether FBT is applicable to Charitable Trusts? Kishan Lal Agarwal Proviso to section 115W(a) of the I T Act inserted from Asst Yr 2006-07 specifically exempts funds ,trusts or institution eligible for exemption u/s 10(23C) or registered u/s 12AA of the I T Act . The proviso statesProvided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall not be deemed to be an employer for the purposes of this Chapter;Earlier ,CBDT vide…