Bad news for salaried person: FBT abolished

Jul 9, 2009Income Tax Employees enjoying perks such as rent-free accommodation, cars, chauffeurs, credit cards and club memberships may have to pay tax on the value of these benefits, with the government proposing a shift in the tax burden on perquisites (perks) from the employer to the employee.Prior to FY06, employees paid tax on certain perquisites. However, with the introduction of Fringe Benefit Tax (FBT), the onus of paying tax on perks shifted to the employer. But this is set to change