Question

Fringe benefit tax is a tax ___________________.

• A. paid by an employer in respect of the fringe benefits provided or deemed to have been provided by an employer to his employee
• B. paid by an employer for the benefits which he enjoys
• C. paid by a person for the benefits which he gets from his employer
• D. paid by a member of Scheduled Castes and Scheduled Tribes for benefits they receive from the government

Answer 1

Answer: (A)

paid by an employer in respect of the fringe benefits provided or deemed to have been provided by an employer to his employee

Fringe benefit tax is payable by employer on the fringe benefits which provided by him to his employee in addition to the salary or wages paid to the employee. The benefits may include the expense incurred on employee's welfare, accommodation or entertainment as well as to the transport allowance given to him. In India, Fringe benefit tax has been defined under section 115WA of Income Tax Act, 1961.