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.