Expert Answers: Some relief likely on personal taxes

NO TAXES: Amitabh Singh, Partner & Country Leader for Human Capital, Global Mobility & Employment Taxes, E&Y answers tax-related queries.

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Keywords: Tax, Personal Finance

Avinash: Will ESOP FBT go away?

Amitabh Singh: Unlikely but I really hope it goes away.

Avinash: There is a panic to get refunds from ITO. Is there any solution or alternative way coming in this Budget?

Amitabh Singh: The current tax forms have provisions for crediting refund directly into your bank account. Hence systems are in place, we can just hope for robust implementation.

H R Sampath Kumar: Will FM tax hefty (running into crores) dividends received by Promoters of Closely held Companies?

Amitabh Singh: Dividends are paid out of post-tax profits and also attract dividend distribution tax. Hence there is no case for further taxation.

S R Rajagopal: I am in receipt of Rs.2000/- every month through a cheque in my name, as a gift/help towards my hearing-impaired disabled son (who is studying in engineering college) from my friend. Can it be exempted under Gift Tax exemption or Casual Income exemption? Please clarify.

Amitabh Singh: If the money is given as scholarship, it should generally be exempt. However, this needs more analysis and not strictly related to the Budget.

Manish Desai: In case of shares of a foreign company granted to employees of Indian subsidiary, FBT is applicable. The question is for the purpose of calculating the FBT the exchange rate as on the date of vesting or on the date of exercise is to be used to determine the FBT liability.

Amitabh Singh: The valuation of fringe benefit is to be done on the date of vesting. My preliminary view is that the exchange rate as on the date of exercise is to be applied since the liability to pay FBT arises on exercise. However, this may need more analysis at my end.