What are the Definitions of Fringe Benefit? What is Charge of fringe benefit tax? Section 115W and 115WA of Income Tax Act 1961

Definitions of Fringe Benefits and Charge of fringe benefit tax are defined under sections 115W and 115WA of Income Tax Act 1961. Provisions under these Sections are :

Section 115W of Income Tax Act "Definitions"

115W. In this Chapter, unless the context otherwise requires,-

(a) "employer" means,-

(i) a company;

(ii) a firm;

(iii) an association of persons or a body of individuals, whether incorporated or not;

(iv) a local authority; and

(v) every artificial juridical person, not falling within any of the preceding sub-clauses:

Provided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall not be deemed to be an employer for the purposes of this Chapter;

(b) "fringe benefit tax" or "tax" means the tax chargeable under section 115WA.

 

Section 115WA of Income Tax Act "Charge of fringe benefit tax"

115WA. (1) In addition to the income-tax charged under this Act, there shall be charged for every assessment year commencing on or after the 1st day of April, 2006, additional income-tax (in this Act referred to as fringe benefit tax) in respect of the fringe benefits provided or deemed to have been provided by an employer to his employees during the previous year at the rate of thirty per cent on the value of such fringe benefits.

(2) Notwithstanding that no income-tax is payable by an employer on his total income computed in accordance with the provisions of this Act, the tax on fringe benefits shall be payable by such employer.