Did your tax nightmare just come true?

New Delhi: The government may have abolished the Fringe Benefit Tax (FBT) in this year's Budget, but this means bad news for salaried employees. The government has explained its new rules which impact anyone who has perks like cars and Employees Stock Options Plans (ESOPs).

According to the new policy:

• Unlike FBT, employees pay tax on perks directly, as was the case in the pre-FBT days
• Since the tax on perks came into effect on April 1, 2009, employees have to pay whatever they owe in the next three months for the entire year (if their employers have not deducted any tax so far)
• The value of the perks will be added to an employee's total income
• Taxable perks include stock options, cars, chauffeurs, rent-free accommodation, interest-free loans, gift vouchers, hotel stay exceeding 15 days and medical facilities