Fringe Benefit Tax is rightly abolished w.e.f April 01, 2010 (A.Y.2010-11).But now same are to be taxed under amended Rule 3 of the Income Tax Rules from April 01, 2009 by a notification issued on December 18, 2009- as Perquisites in the hands of employees .It means perks from April 01, 2009 to December 17, 2009 are retrospectively taxed in the hands of employees.
Retrospective law –when results in additional financial liability to tax payers in fact are like punishing a person without Court’s trial! As such it is most unjustified and bad in law. Also it is more like harassment too. However, in the interest of revenue, Perks can be taxed either from the date of notification or from next financial year to make it justified.
Another Suitable notification in public interest may be issued here to nullify this retrospective type of amendment
Ayush Agrawal
ayushagrawal @ rediffmail.com
CAclubindia
