Section 115WH and 115WI of Income Tax Act, 1961 - Notice Where Fringe Benefits Have Escaped Assessment and Payment of Fringe Benefit Tax

Sections 115WH and 115WI of the Income Tax Act, 1961 relate to the procedure for issuing notice where fringe benefits have escaped assessment and payment of fringe benefit tax.

Section 115WH - Issue of Notice Where Fringe Benefits Have Escaped Assessment

Section 115WH provides that before making assessment or reassessment under section 115WG, the Assessing Officer shall issue notice requiring the assessee to furnish a return of fringe benefits in the prescribed form and manner.

The provisions applicable to such return shall apply in the same manner as a return required under section 115WD.

Important requirements under Section 115WH

• The Assessing Officer must record reasons before issuing notice.
• The notice must require filing of the prescribed return relating to fringe benefits.
• The limitation period prescribed under the section must be followed.
• Where applicable, approval of the specified higher authority is required before issue of notice beyond the prescribed period.

Section 115WI - Payment of Fringe Benefit Tax

Section 115WI provides that notwithstanding that regular assessment of fringe benefits may be completed later, tax on current fringe benefits shall be payable in advance during the relevant financial year according to section 115WJ.

Key Points

Note: The Fringe Benefit Tax provisions were applicable under Chapter XII-H of the Income Tax Act, 1961 for the relevant assessment years. Readers should verify applicability according to the assessment year involved.