Understanding Post-FBT Tax Changes: Which Employee Amenities Are Now Taxed?

Hi all,

Can anybody guide me, please? Since FBT is now abolished, all the amenities that were previously under FBT are now to be taxed to employees. I would like to know which amenities fall under this category and how the calculation is done.

Regards

Mahendra,

We have received the following email from Ernst & Young publication regarding perquisites. As the government has not yet confirmed the same, please refer to the attached Word document file.

Thanks,
Sylvester

Hi all,

Can anybody guide me, please, on how to calculate the perquisite amount for the financial year 2009-10 (including the interest rate calculation)?

Please help me.

Thanks and regards,
Vinayak Patel
Baroda
Mobile: 9909647898

Mahindra,

Since now the notification has also come. All the income minus conveyance, medical reimbursement shall be taxable. Anyway, which is explained in the attachment in the earlier reply. It is sad that while the company will be able to offset it against advance tax, the tax burden of the employee will be sudden and excessive. There is a possibility of car hire instead of fuel reimbursement.