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Bharti Airtel to recover FBT from employees
July, 28th 2007
The board of Bharti Airtel Ltd has approved modification in the company's ESOP Scheme 2001 and 2005, to recover fringe benefit tax and any other statutory taxes and levies by the government from the employees.

The taxation of perquisites provided by an employer to his employees, in addition to the cash salary or wages paid, is fringe benefit tax.

Finance Act 2005 introduced the new law relating to taxability of fringe benefits by inserting new sections 115W to 115WL in the Income Tax Act.

The FBT varies from 20% to 50% depending on the perquisite.
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