What are the Definitions of Fringe Benefit? What is
Charge of fringe benefit tax? Section 115W and
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"
Section 115W. In this Chapter, unless the context
(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
(b) "fringe benefit tax" or "tax" means the tax
chargeable under section 115WA.
Section 115WA of Income Tax Act "Charge of fringe
Section 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.