Page 257 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning

Notes 4. Discuss employee remuneration. Explain with the help of example.

5. Highlight the tax implications of employee compensation package to employer.
6. Explain Fringe Benefit Tax. Why is it important to introduce FBT?

7. Who pays Fringe Benefi t Tax?
8. Elucidate an overview of the possible fringe benefi t options.
9. Mr. Sharma employee of a company lives in Bangalore in a house provided by his employer
for which he incurs expenses worth ` 40,000 per month. Ram’s salary excluding perks is
` 60,000. The fair rental value of house is ` 40,000. Using theses details what criteria you
will use to find the value of rent free accommodation.

10. Ram has an annual salary of ` 5, 00,000. He gets HRA for ` 30,000, Medical reimbursement
for ` 8,000. He also received an allowance of ` 18,000 for his daughter’s education.

Answers: Self Assessment

1. True 2. False

3. True 4. False
5. Tax Planning 6. Central Board of Direct Taxes (CBDT)
7. Assessment 8. Compensation
9. False 10. False

11. True 12. True
13. Minimisation 14. Allowance
15. ` 15,000 16. Salary restructuring

10.8 Further Readings

Books Ahuja, G. K. & Gupta, Ravi, Systematic Approach to Income Tax, Bharat Law
House.
Aggarwal, K., Direct Tax Planning and Management, Atlantic Publications.
Lakhotia, R.N., Income Tax Planning Handbook, Vision Books.
Singhania, V. K. & Singhania, Kapil, Direct Taxes law & Practice. Taxmann
Publications.
Srinivas E. A., Handbook of Corporate Tax Planning, Tata McGraw Hill.

Online links http://www.enotes.com/make-buy-decisions-reference/make-buy-decisions
http://accountingexplained.com/managerial/relevant-costing/make-or-buy-
decision
http://taxguru.in/income-tax/income-tax-planning-in-respect-of-salary-
perquisites.html
http://www.irs.gov/pub/irs-tege/fringe_benefi t_fslg.pdf
http://www.rmsaccounting.com/PDFs/Fringe-Benefi ts-Tax.pdf

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