Income Tax : Now-a -days most of the employers, especially the companies have been providing loans to their employees for the purpose of purcha...
Income Tax : The word ‘Gratuity’, has not been defined in the Income-Tax Act, 1961(the Act). In the absence of any definition of ‘Gratuit...
Income Tax : Recently, I was approached by a multi-national company for an opinion regarding tax-treatment of the expenses reimbursed by the co...
Income Tax : There are a number of entities, the income / surplus of which is governed by the principle of mutuality and therefore, such income...
Income Tax : Of late, the concept of Transferable Development Rights (TDRs) has been very much in vogue, in regard to the developers and builde...
Recently old Rule 3 of the I.T. Rules, 1962, regarding valuation of perquisites, has been substituted by a new Rule, vide Notification No. S.O. 940(E), dated 25.9.2001. Sub-rule (7) of new Rule 3 deals with other fringe benefits or amenities in terms of the provisions of S. 17(2)(vi) of the I.T. Act, 1961. Clause (iv) of sub-rule (7) of Rule 3 deals with the valuation of perquisite by way of any gift or voucher or token
Of late it is becoming difficult for the employers to retain their top-level employees. Therefore, the employers are trying to provide additional benefits for such employees. In the present scenario most of the senior level employees are very much concerned about their post-retirement benefits viz. pension or some kind of other annuity after their retirement from service.
Recently, the Supreme Court has rendered a very important judgement in respect of valuation of perquisite regarding housing accommodation provided by an employer to its employees, in the case of Arun Kumar and Others Vs. Union of India [2006] 286 ITR 89 (S.C.). In this case, the validity of rule 3 of Income-Tax Rules, 1962(the Rules), as amended in 2001,
Under the existing provisions, in the first proviso to section 10(23C), the fund or trust or institution or any university or other educational institutions or any hospital or other medical institution referred to in sub-clauses (iv), (v), (vi) or (via) of the said clause (23C), shall make an application in the prescribed form and manner to the prescribed authority for the purpose of grant of exemption
The Finance Act, 2005, has inserted in the Income-Tax Act, 1961(the Act), a new Chapter XII-H. This Chapter deals with a new tax known as, ‘Fringe Benefit Tax’ (FBT) and it contains Sections 115W to 115WL. Chapter XII-H has come into effect from 1.4.2006 viz. assessment year (AY) 2006-07, relevant to the financial year (FY) 2005-06.
Presently, India is witnessing a knowledge and information technology boom. New BPO (Business Process Outsourcing) units and Call-Centres are being opened every day throughout the length and breadth of the country. In addition, KPO (Knowledge Process Outsourcing) units are also being established in view of tremendous demand for the same. Similarly, there is also a boom in bio-technology research and application.
There are lot of ambiguities in the provisions of fringe benefit tax (FBT), which have been newly introduced in the Income-Tax Act, 1961 (the Act), vide the Finance Act, 2005. Therefore, tax-payers were expecting that the explanatory notes in respect of the aforesaid provisions, to be issued by the Central Board of Direct Taxes (CBDT), would clear up the uncertainties and ambiguities, etc., which have crept there into
The Central Board of Direct Taxes (CBDT) has come out with Circular No.8/2005, dated 29.8.2005, providing Explanatory Notes & clarifications in respect of the provisions of Fringe Benefit Tax(FBT), which have been newly introduced, vide Finance Act, 2005. In my earlier Article on ‘Fringe Benefit Tax – ambiguities explained and doubts resolved’ [published in 276 ITR (Jour.) page 1],
The Finance Act, 2005, has inserted in the Income-Tax Act, 1961 (the Act), a new Chapter XII-H. This Chapter deals with ‘Fringe Benefit Tax’ (FBT) and it contains Sections 115W to 115WL. The provisions of FBT have come into effect from 1.4.2006 viz. assessment year (AY) 2006-07, relevant to financial year (FY) 2005-06. For the purposes of Chapter XII-H, vide Section 115WB(1) of the Act, ‘Fringe Benefits (FB) means any consideration for employment provided by way of –
The Finance Act, 2005, has inserted in the Income-Tax Act, 1961(the Act), a new Chapter XII-H. This chapter deals with a new tax known as, ‘Fringe Benefit Tax’ (FBT) and it contains Sections 115W to 115WL. Chapter XII-H has come into effect from 1.4.2006 viz. assessment year (AY) 2006-07, relevant to the financial year (FY) 2005-06.
