ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An example of a fringe benefit would be if an employee was given a company car to use for both business and personal travel. The value of the car would be considered a fringe benefit and would be subject to FBT.

Detailed explanation-2: -Car maintenance allowance If the employee owns the car, he will be entitled to an exemption of Rs 2, 700 per month or Rs 3, 300 per month in respect of the driver’s salary, car maintenance expenses and fuel expenses borne and reimbursed by the employer, ” Mistry said.

Detailed explanation-3: -Any amount recovered by the employer from the employee will be reduced in computing the taxable amount. As said earlier, irrespective of who owns the car, if the car provided by the employer is used solely for official purposes, no tax liability exists.

Detailed explanation-4: -Introduction To Fringe Benefit Tax In India This consists of things such as tickets, reimbursements, superannuation contribution, company vehicles etc. Hence, if an employer spends on things like the entertainment costs, free of cost share allotments or allotting them at lower rates and hospitality expenses etc.

Detailed explanation-5: -Stock options. Disability insurance. Paid holidays. Education reduction. Retirement planning services. Life insurance. Paid time off. Commuter benefits. More items •01-Dec-2022