(1)For the purposes of this Chapter, the value of fringe benefits shall be the aggregate of the following, namely:-(a)cost at which the benefits referred to in clause (b) of sub-section (1) of section 115-WB, is provided by the employer to the general public as reduced by the amount, if any, paid by, or recovered from, his employee or employees:Provided that in a case where the expenses of the nature referred to in clause (b) of sub-section (1) of section 115-WB are included in any other clause of sub-section (2) of the said section, the total expenses included under such other clause shall be reduced by the amount of expenditure referred to in the said clause (b) for computing the value of fringe benefits;(b)[ the amount of contribution, referred to in clause (c) of sub-section (1) of section 115-WB, which exceeds one lakh rupees in respect of each employee;] [ Substituted by Act 21 of 2006, Section 29, for Clause (b) (w.e.f. 1.4.2007).](ba)[ the fair market value of the specified security or sweat equity shares referred to in clause (d) of sub-section (1) of section 115-WB, on the date on which the option vests with the employee as reduced by the amount actually paid by, or recovered from, the employee in respect of such security or shares. [ Inserted by Act 22 of 2007, Section 39 (w.e.f. 1.4.2008).]Explanation. - For the purposes of this clause,-(i)"fair market value" means the value determined in accordance with the method as may be prescribed by the Board;(ii)"option" means a right but not an obligation granted to an employee to apply for the specified security or sweat equity shares at a predetermined price;](c)twenty per cent of the expenses referred to in [clauses (A) to (L)] [ Substituted by Act 18 of 2008, Section 26, for " clauses (A) to (K)" and " clauses (L) to (P)" , respectively (w.e.f. 1.4.2009).] of sub-section (2) of section 115-WB;(d)fifty per cent of the expenses referred to in [clauses (M) to (P)] [Substituted by Act 18 of 2008, Section 26, for " clauses (A) to (K)" and " clauses (L) to (P)" , respectively (w.e.f. 1.4.2009).] of sub-section (2) of sub-section (2) of section 115-WB;(e)[ five per cent of the expenses referred to in clause (Q) of sub-section (2) of section 115-WB.] [ Inserted by Act 21 of 2006, Section 29 (w.e.f. 1.4.2007).]
