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income tax

Shankar (58 Points)

10 May 2007

friends

if any perquisite paid to employee and on that perquiste company pay fbt whether such perquiste value is part of salary of employee.

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6 Replies

Friend (124 Points)
Replied 10 May 2007

This Q is already answered in the topic GIFT RECEIVED IN CASH
anyway...
According to Sec 56(2)(va) any gift received from unrelated persons ( the section also specifies who are relatives) shall be fully taxable if it exceeds Rs 25000.
For example :
If I receive a gift of Rs 25000 from you Then Amount Taxable is Rs 0 (as it does not exceed Rs 25000)
If I receive a gift of Rs 25001 from you then the Amount Taxable is Rs 25001 (as it exceeds rs 25000)
Hope things are clear..

Manish (34 Points)
Replied 10 May 2007

Ref Sec 17 of Income tax, as per which Perquisite include value of any other fringe benefit excluding fringe benefits chargeable to tax under Chapter XII-H
as per Sec. 115WB, privilege, service, facility does not include perquisites in respect of which tax is paid or payable by the employee.
This exclusion answers yr querry.

(Guest)

sir, i want to know about that FBT applicable of which types of exp. hand of employer

rahi (student) (13 Points)
Replied 25 August 2007

a HUF give gift to its member,and a member redeem it in a mouth what is the tax status n transfer stamp duty in case of company law

aravinda (Tax) (33 Points)
Replied 28 August 2007

Source CIRCULAR FINANCE ACT, 2005 - FBT Finance Act, 2005 - Explanatory Notes on the Provisions relating to Fringe Benefit Tax CIRCULAR NO. 8/2005, DATED 29-8-2005 Whether expenditure incurred on gifts provided to employees, on the occasion of marriage, liable to FBT? 99. Any expenditure incurred on gifts provided to employees, whether on the occasion of marriage or otherwise, falls within the scope of clause (O) of sub-section (2) of section 115WB and, accordingly, is liable to FBT. Is a gift in kind excluded? If included, how is its valuation to be done? 100. As per provisions of clause (O) of sub-section (2) of section 115WB any expenditure incurred or payment made for the purposes of gift is liable to FBT. The cost to the employer of the gift would be taken into account for the purposes of valuation of such fringe benefit.