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Fringe Benefits Tax
Items like a company provided accommodation, a company provided car, or a soft housing loan given by the company are actually part of your CTC. The company claims them as expenses, but you do not need to declare them as part of your income, since they are not part of your salary. To remove this 'loophole' the Government had introduced a tax called the Fringe Benefit Tax (FBT) on all such benefits. It had devised a method of calculating the value of all such benefits, and assigned rates of tax to each of them.
However, there were widespread protests on difficulties in calculating the value of FBT. Some items like sales promotion expenses, which were included in FBT, were deemed to be unfair. Following all this, the FBT has now been abolished from Financial Year 2009-10.