New Delhi:
The government is considering taxing most of the perquisites, including housing and conveyance at the hands of the employees during this fiscal.
According to official sources, the salaried class may have to bear an additional tax burden on their perquisites in the form of housing, conveyance, or monetary compensations in lieu of them, among other benefits.
The new levy may be applicable with retrospective effect from April 1 this year, the sources added. The Government may soon come out with a notification on the computation of the value of the housing and conveyance allowances to determine the tax liability.
The Fringe Benefit Tax, which taxed the perquisites at the hands of the employers, was done away with in the Budget 2009-10. Now with that levy gone, the Government may tax the salaried class for the perks they receive for conveyance and housing among other benefits.
"Under the FBT, the tax burden of perquisites that was on the employer will now be on the employees," said Ernst & Young Tax Partner Amitabh Singh.
"The taxes for about nine months would have to be paid by the employees in case the rules come in effect from April 1, 2009. This could be an additional burden on them this year," Singh said.
The sources further said the Government may come out with a method for computing the levy on the perks given by employers, including government.
Other perks like traveling, free-food and non-alcoholic beverages provided by the employer, any gift or vouchers received by employees on ceremonial occasions, reimbursements for membership of a club tour and allowances would also come under the purview of this new tax plan.
Any benefit by the employer that will result in free education for any member of employee's family, will also be taxed.
According to official sources, the salaried class may have to bear an additional tax burden on their perquisites in the form of housing, conveyance, or monetary compensations in lieu of them, among other benefits.
The new levy may be applicable with retrospective effect from April 1 this year, the sources added. The Government may soon come out with a notification on the computation of the value of the housing and conveyance allowances to determine the tax liability.
The Fringe Benefit Tax, which taxed the perquisites at the hands of the employers, was done away with in the Budget 2009-10. Now with that levy gone, the Government may tax the salaried class for the perks they receive for conveyance and housing among other benefits.
"Under the FBT, the tax burden of perquisites that was on the employer will now be on the employees," said Ernst & Young Tax Partner Amitabh Singh.
"The taxes for about nine months would have to be paid by the employees in case the rules come in effect from April 1, 2009. This could be an additional burden on them this year," Singh said.
The sources further said the Government may come out with a method for computing the levy on the perks given by employers, including government.
Other perks like traveling, free-food and non-alcoholic beverages provided by the employer, any gift or vouchers received by employees on ceremonial occasions, reimbursements for membership of a club tour and allowances would also come under the purview of this new tax plan.
Any benefit by the employer that will result in free education for any member of employee's family, will also be taxed.
