Multiple choice

Which of the following statements is/are correct?

  1. The fringe benefit tax (FBT) was imposed on employers by India's Finance Act, 2005.
  2. The fringe benefit tax was abolished in the 2009 Union budget of India by the then Finance Minister Pranab Mukherjee.
  3. According to the new proposed Direct Tax Code (DTC), fringe benefit tax will be charged to the employee rather than the employer.

  1. Only 1

  2. Only 1 and 2

  3. Only 1 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All of the given statements are perfectly correct. A student may get confused in statement 3, but the proposed DTC carries the provision for fringe benefit tax to be charged on the employee rather than the employer.

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