Fringe Benefit Tax(FBT)

Another type of direct tax is Fringe Benefit Tax. This tax is applicable on perquisites, which the employer provides to the employees in addition to cash salary and wages paid during the year. It is paid in addition to Income Tax and is paid at a specified rate. The tax is levied on the employer and is calculated on the net amount of expenses. The expenses that fall under this tax are expenses for entertainment, cars, club, etc.
It is very easy to operate FBT features in Tally, which facilitates automatic computation of Fringe Benefit Tax based on the voucher entry made by the user.