Fringe benefits tax (India) explained

The fringe benefits tax (FBT) was the tax applied to most, although not all, fringe benefits in India. A new tax was imposed on employers by India's Finance Act 2005 from the financial year commencing April 1, 2005.^[1] The fringe benefit tax was temporarily suspended in the 2009 Union budget of India by the then Finance Minister Pranab Mukherjee.^{[2] [3]}

The following items were covered:

• Employer's expenses on entertainment, travel, employee welfare and accommodation. The definition of fringe benefits that have become taxable has been significantly extended. The law provides an exact list of taxable items.
• Employer's provision of employee transportation to work or a cash allowances for this purpose.
• Employer's contributions to an approved retirement plan (called a superannuation fund).
• Employee stock option plans (ESOPs) have also been brought under fringe benefits tax from the fiscal year 2007–08.

Notes and References

1. News: What is fringe benefit tax? . March 22, 2005 . April 13, 2012.
2. News: FBT abolished: Bad news for employees . July 6, 2009 . April 13, 2012.
3. News: (Updated Link) FBT abolished: Bad news for employees . December 27, 2017.