Need A Financial Product Forums Tax Savings What is a perquisite tax?

This topic contains 1 reply, has 2 voices, and was last updated by  Gouri Kapoor 2 years, 2 months ago.

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #47366

    Gouri Kapoor
    Member

    What is a perquisite tax?

    #47367

    In 2009 the central government of India abolished the fringe benefit tax, after abolishing the FBT or fringe benefit tax. The central government introduced Perquisite Tax. The perquisite tax is a benefit given by the employer of the firms to their employees e.g. if individual’s company provides him/her non-monetary benefits like car with a driver, club membership, ESOP etc. All these non-monetary benefits are taxable under perquisite tax. In case of ESOP, the employee of the firm will have to pay Tax on the difference between the price paid by him/her and the FMV or Fair Market value of the shares on the date of exercise.

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.