FBT Amendment

Ultimatly FBT is abolished so now earlier provisions will apply e.g. car facility, garder etc etc

When FBT is abolished,ultimately it effects the employee community as no longer Employes is liable to pay the same.

For instance in case of ESOPs earlier employer is liable to pay FBT on the difference of the amount i.e: the difference of Market price on the day of exercising and the fair vale.

Now employee is liable to pay the same,dont you think this is totally unfair on the part of the employee community..

Abolishing of FBT seems to be extremely unfair to the employees as they will, now, feel the pinch... The effective rate of taxing such '115W Fringe Benefits' would effectively become 30.9%, as against the current 6.8% to 7%. This is because the taxation under FBT considered only 20%,50%,5% of the FB value, as the case may be, but now the employee would be charged tax over the whole perk amount.... So, even fuel charges paid by the employer may be taxed as perk in the hands of the employee....

HI What is the calculation of the Perquisite value for the heads for which FBT is aboolsihed.