Should perks tax rules replace FBT?

I agree with the concept of FBT. All income/benefit received by an Tax payee to be taxed and parks are normally given to managers and executives and top level employees and lower level staff are deprived of it. But FBT guidelines are partisan and to be modefied to include high level GOVT officials, politians and businesmen.

Abdul Gafoor

I agree to the proposal to tax all the perks dished out to the employess. in many cases in Indian companies there is a illegal system in operation of paying the Senior & Middle level Managers in cash on vouchers which is termed as actuals in many cases.these are hidden in the books of account of the companies on various account heads which is very difficult to figure even during audits or any dept of Govt.

The above  usually happens in the leading private companies in India which creates a seperate affluent class of people who's life style and habbits tend to be different from the managers of a PSU or a Govt Servant which in turns is responsible for bringing in the corruption and nepotism in a poor developing country like India, wherein the other class of managers try to ape the former in a society such as ours .

No doubt the Prime Minister was apt in commenting about the high salaries and perks on Indian Managers and the bad effect of creating a disparity in incomes ,lifestyle, affluence in the society.

perks aren't the necessity so ,if that gets taxed is completely fair .corporate people  voice there opinion on equitable distribution of amenities ,upliftment of poor ,development of basic infrastructure ,the concern over rising debt from golbal financial institutions for carrying out devlopment projects ,deployment of resources on civic infrastructure ,money bringing these projects to life will not rain .it has to come from taxpayers only .perhaps,there aren't many people who honestly pay there taxes,everyone wants to fall in slab with minimal tax rate or enjoy rebates under various heads .

In my opinion the basic difference between the FBT system and the current one is that taxes were earlier being picked by employers and now employees are picking up the tab, as the taxation of perquisites will be collected as tax deducted at source (TDS) from employees. Finally govt gave some relief to coporate sector during this crsis time. It will save company tax burden upto some extent.