Tax norms for salaried class to be liberal

Our Economic Bureau

New Delhi, Aug 3: Central Board of Direct Taxes (CBDT) chairman OP Srivastava has said that the norms for tax on perks, to be finalised in a month, would be liberal for the salaried class. However, the industry felt that the measure would increase cost and make Indian industry incompetitive.

Mr Srivastava, while speaking at a Ficci seminar “Draft Rules for Valuation of Perquisites and guidelines relating to employees stock option plans,” here on Friday, said: “The government intends to collect taxes without affecting the motivation of the employees.”
According to the CBDT chief, the proposed tax on perks and employee stock options was liberal and wider-ranging when compared to other countries.