Fringe Benefit Tax Abolition: How Should We Handle the FBT Components Now?

Dear Colleagues,

I request you to please guide me on the FBT removal/abolition. How should we treat the earlier FBT component now? Does it become completely taxable? Are there any fine prints that need to be considered?

Is there any thread posted on this earlier that I can refer to? Or could you please share your knowledge with me on this? Please... :)

Maria

Thank you for providing this information. Now that Fringe Benefit Tax (FBT) has been abolished recently, how should we treat the components that were previously part of FBT? Would they be included in the taxable salary? Have we received a circular from the Central Board of Direct Taxes (CBDT) regarding this matter? Any insights would be appreciated. Thank you.

Please help, as FBT has been abolished. Please let me know how the per diem earned through short-term foreign trips is taxed.

What are the FBT abolition implications for the new notification from the IT department issued in Dec 2009? How is the transfer of movable assets calculated in this case?

In my company, we have a car policy, and now, as per the new notification, any asset transferred after 1st April 2009, the company needs to recover the tax on the depreciated value of the car, less the amount paid by the employee. So, in this case, how will the EMI deducted from the employee's salary be taken care of?

As FBT is scrapped by the employer (companies), it will still be deducted from the employee's salary for the below-mentioned components. FBT is taxable and applies to:

- Vehicle allowance
- Communication allowance
- Medical allowance
- Education allowance

Regards,
Charvaka Reddy

Hi,

Please find the clarification below. Hope it helps.

Warm Regards,
Smita