Hi friends, can someone help me in this
After abolishing FBT, what is the implication for treatment of perquisites.Is there any circular/notification on the same?
Ex: Monthly conveyance reimbursement was included in the employee salary as perquisite upto AY 2005-06.Now FBT being abolished what would be the taxability implication?
Would you want it for the examination POV or in the actual tax computation?
In the general exam POV, perquisite valuation u/s 17(2) will not be asked.
For the actual tax calculation, as FBT is abolished the perquisite value is included in the assesse's computation of income.
Mathews,Thank you
Rule 3 of the act (Perquisite valuation) covers the example i cited. I just want to confirm if we can go with the same.Else any recent circular/notification has been issued.
I have got this issue at work.
CAclubindia
