According to a recent notification issued by CBDT, PERQUISITES earned by salaried employees will now be taxed in the hands of employees. This is applicable with retrospective effect from 1-4-2009.
This means the employers will deduct tax at source from the income of the employees for the entire year, i.e. from 1-4-2009 in the coming three months, i.e. Jan 2010 to March 2010.
Earlier, because of the existence of FBT, such perks were not taxed in the hands of employees. With the abolition of FBT, Central Govt. has resorted back to the old system of taxing perks, i.e. directly in the hands of the receipients.
However, the notification coming so late in the year and that too with retrospective effect from 1-4-2009 is bound to take away a big chunk from employees' earnings (those receivng specified perks) as tax for entire year will be deducted in only three months. A WORST NIGHTMARE FOR SALARIED TAXPAYERS.
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