Five-and-a-half months after abolishing the fringe benefit tax (FBT) during the Budget announcement, the Central Board of Direct Tax (CBDT) has now issued a notification for taxation of perquisites that replaces the previous FBT rules. The perquisite taxation rule comes with a retrospective effect from April 1, 2009.
Perquisite as defined by the CBDT would include office car usage, housing provided by the company, employee stock options (ESOP), travel allowances, and food and gift vouchers covered. The perquisite taxation on housing will be the same as earlier.
"Your perks will be taxed w.e.f April 1, 2009"
- Moneycontrol.com - Your perks will be taxed w.e.f April 1, 2009 (view on Google Sidewiki)
