New Delhi, Feb 28 (UNI) Employees' Stock Option Plan (ESOP) has been brought under the Fringe Benefit Tax (FBT) in the Budget 2007-08.
The value of the fringe benefit will be determined in accordance with a prescribed method on the date of exercise of the option, Finance Minister P Chidambaram said during the presentation of Budget proposal 2007-08 in the Lok Sabha today.
Expenditure on free samples and displays has been excluded from the scope of FBT, he added.
Dividend distribution tax for companies has been raised from 12.5 per cent to 15 per cent. In the case of dividends distributed by money market mutual funds and liquid mutual funds, tax on dividends paid has been raised to 25 per cent for all investors, the FM said.
The minister said Minimum Alternate Tax (MAT) has been extended to income in respect of which deduction is claimed by companies under Section 10A&10B of the Income Tax Act. Deduction under section 36 (1) (viii) to be restricted to 20 per cent of profits each year, he added.
UNI
The value of the fringe benefit will be determined in accordance with a prescribed method on the date of exercise of the option, Finance Minister P Chidambaram said during the presentation of Budget proposal 2007-08 in the Lok Sabha today.
Expenditure on free samples and displays has been excluded from the scope of FBT, he added.
Dividend distribution tax for companies has been raised from 12.5 per cent to 15 per cent. In the case of dividends distributed by money market mutual funds and liquid mutual funds, tax on dividends paid has been raised to 25 per cent for all investors, the FM said.
The minister said Minimum Alternate Tax (MAT) has been extended to income in respect of which deduction is claimed by companies under Section 10A&10B of the Income Tax Act. Deduction under section 36 (1) (viii) to be restricted to 20 per cent of profits each year, he added.
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