Published Paper Details:

Fringe Benefits means additional benefits provided by employer to his employees in addition to regular salary and wages. It includes various types of payments amenities, facilities and services out of which some are voluntary and some are legally compulsory according to Factory Act-1948. In India these facilities i.e., benefit classified in five major categories: 1. Payment for time not worked 2. Employee security 3. Safety and healthy 4. Personal service and family benefits 5. Old age and retirement benefits These benefits are helpful in increasing production and productivity retaining skilled and trained employee in factory employees feel mental and physical satisfaction. But in practical there is a great possibility to tax evasion in regard of fringe benefits from early state to till date. To prevent tax evasion in this regard the Finance Act-2005 introduced a newly tax Fringe Benefit Tax w.e.f. Assessment year 2006-07 which levied in the hand of employer in addition to income tax. But due to several reason it abolished by Finance Act-2009 w.e.f. Assessment year 2010-11. Then after the value of fringe benefits become part of gross salary and now it taxable in hand of employee. Through this research paper I focus challenges and remedies in valuation and taxation of fringe benefits.