The Finance (No. 2) Act, 2009 was produced and passed by the houses of Parliament in mid of the year 2009-10. In the Finance Bill a new section Section 115WM was inserted in the Income Tax Act, 1961 to abolish the FBT with effect from Assessment Year (A.Y.) 2010-11. Till that date many of the assessee had paid advance tax in respect of value of fringe benefits provided by employer to its employees. Hence, CBDT vide its Circular No. 2/2010, dated 29-1-2010 has decided that any assessee who has paid advance tax in respect of fringe benefits for A.Y. 2010-11 shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11. The assessee can adjust such sum against its advance tax obligation in respect of income for A.Y. 2010-11 or in case of loss to claim such payment as refund as advance tax paid in A.Y. 2010-11.
Adjustment of advance tax in respect of fringe benefits for assessment year 2010-11 against advance tax
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