With FBT abolished, perks to be now taxed in hands of employees
WITH the complicated and cumbersome Fringe Benefit Tax abolished in the last budget, the employee is now liable to pay tax on all those perks be it a residential accommodation, car, sweeper, gardener, watchman, personal attendant, gas electricity, water, free or concessional educational facilities for any member of his household, free transport, interest-free or concessional loan for any purpose, travelling, touring, accommodation and any other expenses paid for or borne or reimbursed by the employer for any holiday availed of by the employee or any member of his household, free food and non-alcoholic beverages, any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions, membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit care (including any add-on-card) provided by the employer, any expenditure incurred (including the amount of annual or periodical fee) in a club, transfer of any movable asset, ESOPs.
Rule 3 of the Income tax Rules have been amended with effect from 1.4.2009.
CBDT Notification No. 94/2009 (F.NO. 142/25/2009-SO (TPL): Dated December 18 2009