CBDT Allows Adjustment of Advance FBT with Advance Income Tax

The Fringe Benefit Tax (FBT) was levied on certain fringe benefits under the Income Tax Act. The FBT was abolished w.e.f. Assessment Year 2010-11. However, during the current Financial Year 2009-10 some assessees have paid “advance tax in respect of fringe benefits” for Assessment Year 2010-11. In such cases the CBDT has decided that any installment of “advance tax paid in respect of fringe benefits” for A.Y. 2010-11 shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11. The assessee can adjust such sum against its advance tax obligation in respect of income for A.Y. 2010-11 or in case of loss etc claim such payment as refund as advance tax paid in A.Y. 2010-11.

SOURCE: CIRCULAR NO.2/2010 DATED 29/01/2010