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Tax authorities turn gaze on perquisites
July, 09th 2014

In a move reminiscent of the erstwhile Fringe Benefit Tax, tax authorities are monitoring allowances, perks and reimbursements to the senior management of top companies, large employers and PSUs.

The Central Board of Direct Taxes, in an internal report, ‘Central Action Plan 2014-15’, has outlined a strategy to increase the tax kitty under the Tax Deducted at Source head, for which perks to top executives are being seen as a potential source. The report, seen by Business Line , has said that the entire compensation structure of top executives should be examined.

In 2005, the Fringe Benefit Tax was introduced by the UPA to tax perks given to employees. After a hue and cry, it was withdrawn in 2009.

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