Income-tax Act, 1961 | Chapter XII-H

Section 115WI: Payment of Fringe Benefit Tax

Current legal position: Fringe benefit tax (FBT) under Chapter XII-H does not apply from Assessment Year 2010-11 onwards, by virtue of Section 115WM. Section 115WI is therefore relevant primarily to historical tax periods and legacy proceedings.

Section 115WI of the Income-tax Act, 1961 governed the advance payment of fringe benefit tax by employers. It required tax on taxable fringe benefits to be paid during the financial year in which the benefits arose, even though their regular assessment would take place in a later assessment year. The payment mechanism was prescribed in Section 115WJ.

Text of Section 115WI - Payment of fringe benefit tax

Notwithstanding that the regular assessment in respect of any fringe benefits is to be made in a later assessment year, the tax on such fringe benefits shall be payable in advance during any financial year, in accordance with the provisions of section 115WJ, in respect of the fringe benefits which would be chargeable to tax for the assessment year immediately following that financial year, such fringe benefits being hereafter in this Chapter referred to as the "current fringe benefits".

Meaning and operation of Section 115WI

The opening words, "Notwithstanding that", made advance payment mandatory despite the fact that a regular assessment might be completed later. The expression "current fringe benefits" referred to fringe benefits chargeable for the assessment year immediately following the financial year in which they were provided.

For example, fringe benefits arising during Financial Year 2008-09 related to Assessment Year 2009-10. Section 115WI required advance tax to be paid during that financial year in accordance with Section 115WJ, rather than waiting for a final assessment.

Is Section 115WI applicable today?

No, not for current-year fringe benefits. Section 115WM, inserted by the Finance (No. 2) Act, 2009, provides that Chapter XII-H does not apply to assessments for the assessment year beginning 1 April 2010 or any later assessment year. Accordingly, the standalone FBT advance-tax obligation under Section 115WI ended for those years.

The provision remains useful for interpreting historical liabilities, returns, assessments or disputes relating to the years in which FBT applied. The taxation of employee perquisites under other applicable income-tax provisions is a separate issue and should not be confused with the former employer-level FBT.

Frequently asked questions

Did Section 115WI itself prescribe instalment dates?

No. Section 115WI established the advance-payment obligation; Section 115WJ set out the payment mechanics and instalment requirements.

Was fringe benefit tax payable even if an employer had no regular income-tax liability?

Under the former regime, Section 115WA(2) provided that an employer could be liable for FBT notwithstanding that no income tax was payable on its total income.

When was fringe benefit tax discontinued?

Chapter XII-H ceased to apply from Assessment Year 2010-11 onwards under Section 115WM.

Official legislation and references

Updated 27 October 2026. This article explains the historical provision and does not constitute case-specific legal or tax advice.