What is Issue of notice where fringe benefits have
escaped assessment? What is the method of Payment of fringe
benefit tax? Section 115WH and
Income Tax Act 1961
Issue of notice where fringe benefits have escaped
assessment and Payment of fringe benefit tax are
defined under sections 115WH and 115WI of Income Tax Act 1961.
Provisions under these Sections are :
Section 115WH of Income Tax Act "Issue of notice
where fringe benefits have escaped assessment"
Section 115WH. (1) Before making the assessment or
reassessment under section 115WG, the Assessing Officer
shall serve on the assessee a notice requiring him to
furnish within such period as may be specified in the
notice, a return of the fringe benefits in respect of which
he is assessable under this Chapter during the previous year
corresponding to the relevant assessment year, in the
prescribed form and verified in the prescribed manner and
setting forth such other particulars as may be prescribed,
and the provisions of this Chapter shall, so far as may be,
apply accordingly as if such return were a return required
to be furnished under section 115WD.
(2) The Assessing Officer shall, before issuing any
notice under this section, record his reasons for doing so.
(3) No notice under sub-section (1) shall be issued for
the relevant assessment year after the expiry of six years
from the end of the relevant assessment year.
Explanation.-In determining fringe benefits chargeable to
tax which have escaped assessment for the purposes of this
sub-section, the provisions of the Explanation to section
115WG shall apply as they apply for the purposes of that
(4) In a case where an assessment under sub-section (3)
of section 115WE or section 115WG has been made for the
relevant assessment year, no notice shall be issued under
sub-section (1) by an Assessing Officer, after the expiry of
four years from the end of the relevant assessment year,
unless the 9[Principal Chief Commissioner or] Chief
Commissioner or 9[Principal Commissioner or] Commissioner is
satisfied, on the reasons recorded by the Assessing Officer,
that it is a fit case for the issue of such notice.
Section 115WI of Income Tax Act "Payment of
fringe benefit tax"
Section 115WI. Notwithstanding that the regular assessment
in respect of any fringe benefits is to be made in a later
assessment year, the tax on such fringe benefits shall be
payable in advance during any financial year, in accordance
with the provisions of section 115WJ, in respect of the
fringe benefits which would be chargeable to tax for the
assessment year immediately following that financial year,
such fringe benefits being hereafter in this Chapter
referred to as the "current fringe benefits".