Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker

ITAT UPHOLDS PLEA ON FBT!

No Fringe Benefit Tax leviable on expenditure for non-employees like entertainment, sales promotion, etc.

    Taxpayers will recall the highly controversial levy of Fringe Benefit Tax (FBT) imposed by Finance Minister P. Chidambaram in 2005 and the grave protests voiced against the mischievous interpretations of the deeming provisions as contained in the circulars on the subject issued by the Central Board of Direct Taxes (CBDT). Tax professionals of Gujarat pioneered the crusade against FBT and your columnist was privileged to be at the helm and also plead the PIL against FBT filed before the Gujarat High Court. The High Court, appreciating the merits of the writ petition, granted an unprecedented interim relief directing that all taxpayers of Gujarat could in protest, instead of paying the disputed FBT to the exchequer, deposit the same in an earmarked bank account in their own name.

    Several writ petitions challenging FBT and its illogical interpretations by the CBDT came to be filed in various High Courts across the country and the Supreme Court directed that the Delhi High Court may undertake a consolidated hearing of all such petitions. The same is still pending as on date. However, soon after the changeover of FM, from PC to Pranabda in 2009, the four year old FBT came to be finally abolished and taxpayers finally heaved a sigh of relief. (more…)

Perk up your Employee’s Diwali with a Tax-free Gift!

Gift Below Rs.5,000 On Ceremonial Occasion

Treated As Tax Free Perk Under I.T. Rules

“If you give what can be taken, you are not really giving,” quoted the noted Sufi author Idries. Trying to think of giving something to your employees during the coming festive season, out of which even the Taxman cannot take anything? Here is a smart idea!

(more…)

Minus FBT Shock Pay Packets Rock!

Conveyance, Telephone, Entertainment & Medical Reimbursements Get Increasing Attention After FBT Abolition!

The notorious Fringe Benefit Tax (FBT) having been abolished with effect from 1st April, 2009, employers have started taking a fresh look at restructuring the pay packets of their employees to make them more tax friendly. (more…)

Powered by Epaperz.com | Hosted at HostADomainNow.com