The fringe benefits tax (FBT) was the tax applied to most, although not all,
fringe benefits in India. A new tax was imposed on employers by India's Finance Act 2005 from the financial year commencing April 1, 2005.[1] The fringe benefit tax was temporarily suspended in the
2009 Union budget of India by the then Finance Minister
Pranab Mukherjee.[2][3]
The following items were covered:
Employer's expenses on entertainment, travel, employee welfare and accommodation. The definition of fringe benefits that have become taxable has been significantly extended. The law provides an exact list of taxable items.
Employer's provision of employee transportation to work or a cash
allowances for this purpose.