New Delhi, December 22: The Finance Ministry today said asking the employees to pay taxes on their perquisites in not new because such incentives were under the net even prior to the Fringe Benefit Tax.
“My understanding is that perquisites were being taxed in the hands of the employees even earlier, prior to the Fringe Benefit Tax (FBT)…so there is nothing new which has happened,” Finance Secretary Ashok Chawla told media persons here today.
Yesterday, the Government notified the new rules for valuing perks like accommodation, conveyance and others given to the salaried class for calculating their tax liability.
The proposal will be effective from April 1, 2009.
Perquisites given by the employer such as residential accommodation, conveyance facility and other benefits to the family of the employee would be added to the salary for income tax purposes, said the notification.
–Agencies