Tax on Fringe Benefits Dissolved

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Jul. 6 – India’s Finance Minister Pranab Mukherjee has announced the cancellation of the fringe benefit tax applied to non-salary perks given by companies to their employees.

The tax has been in place since 2005 but Indian businesses have since rallied to have the tax removed. Soon the fringe benefit taxes charged on a company’s entertainment expenses, employee welfare,travel and accommodation will be gone.

These also include:transportation allowances, company retirement fund contributions and employee stock option plans.