India's Tax on Perks Likely to be Retroactive

The Indian government is all set to impose tax on all perks paid for by the company, under a new law that replaces the already abolished Fringe Benefit Tax, says The Economic Times.


According to the Times, the perquisites to be included in the taxable salary include accommodation given by the employer, expenses on motor car for official or personal use, salaries of the driver, gardener and even sweeper if paid by the employer and concessional education provided to the employee's children. 


The government may come out with a notification soon on the valuation of these perks, says the Times. The valuation rules, yet to be officially announced by the Finance Ministry, are likely to be applicable with retrospective effect from April 1 this year.



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