Hi Devansh,
I hope I'm not late in commenting on this PowerPoint presentation since it was posted in Jan '07. :)
This has come into focus due to the Fringe Benefit Tax (FBT) introduced by the Honorable Finance Minister, P. Chidambaram.
This was implemented because many companies were providing tax-free compensation to employees, and the Finance Minister intended to bring these benefits under the taxation purview.
Types of fringe benefits include:
- Contributions made by the employer to an approved pension scheme for the employee, which may also cover cheap or free canteen meals for all employees, even if separate facilities are provided for different groups of employees, in-house sports facilities, counseling services for redundant employees, childcare for children under 18, transportation services such as works buses or subsidies for public transportation, bicycles and cycling safety equipment for commuting, workplace parking for bicycles and motorcycles, reasonable removal expenses for job transfers, genuine personal gifts unrelated to work such as retirement or wedding gifts, and gifts received from sources other than the employer like tickets to events or club memberships.
- Compensation and benefits (C&B) packages may include elements like professional development allowances.
Could you please clarify if you mentioned "Payment for time not worked"?
Regards,
Rajat Joshi