Impact of FBT
Employees always keep an eye on the salary structure as most of the time any change in the tax laws impacts some part of the salary and thus salary restructuring is always likely. The Fringe Benefit Tax (FBT) has already resulted in such a situation.
Across the country, FBT has already made an impact on the salaried class in the benefits such as superannuation scheme, with companies deciding to shift from contributions to company superannuation funds in an employee's overall compensation package.
The effect in most cases may be a withdrawal of some benefits, and a switch to a more transparent, all-cash compensation package. The effect could be a higher tax liability and in turn a lower take-home pay for employees.
Post-FBT, companies will pay an FBT at the rate of 30 per cent (plus surcharge and education cess) on an appropriately defined valuation, from 5 per cent to 100 per cent of the payout, on a range of expenses/payments/reimbursements (as shown in table 1......

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Title: Impact Of Fbt In India
Approximate Word Count: 803
Approximate Pages: 4 (250 words per double-spaced page)

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