CIRCULAR NO
2/2010, Dated: January 29, 2010
Sub: Adjustment of “Advance Tax in respect of Fringe Benefits” for Assessment Year 2010-11 against “Advance Tax” – matter regarding.
The Finance Act, 2005 introduced a levy namely Fringe Benefit Tax (FBT) on the value of certain fringe benefits as contained in Chapter XII H (Sections 115 W to 115 WL) of Income Tax Act, 1961. By the Finance (No. 2) Act, 2009 a new Section 115 WM was inserted to abolish the FBT with effect from Assessment Year (A.Y.) 2010-11. Consequently, benefits given to employees are taxed as perquisites in the hands of employees in terms of amendments to Clause 2 of Section 17 of Income Tax Act, 1961. However, during the current Financial Year 2009-10 some assessees have paid “advance tax in respect of fringe benefits” for Assessment Year 2010-11. In such cases the Board has decided that any installment of “advance tax paid in respect of fringe benefits” for A.Y. 2010-11 shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11. The assessee can adjust such sum against its advance tax obligation in respect of income for A.Y. 2010-11 or in case of loss etc claim such payment as refund as advance tax paid in A.Y. 2010-11.
2. This circular may be brought to the notice of all officers in the field for compliance.
Hindi version to follow
F. N0.385/05/2010-IT (B)
(Ansuman Pattnaik)
Director (Budget)
1.FOLLOW US ON TWITTER CLICK HERE: http://twitter.com/taxpertindia
2.Posted www.taxpertindia.blogspot.com
3.Get Tax updates from my blog through by joining my google group
CA_taxmannindia:http://groups.google.co.in/group/ca_taxmannindia?hl=en
5.Get Free Quality SMS updates from my blog on your MOBILE:http://labs.google.co.in/smschannels/subscribe/ca_taxmannindia
OR
Send a message JOIN ca_taxmannindia to 9870807070 thru ur mobile nd receive updates
Friday, January 29, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment