Under the government's 2009–2010 budget proposal, employers would no longer be required to pay the Fringe Benefit Tax (FBT). Instead, employees would be taxed on certain fringe benefits received from employer, as perquisite tax. Perquisites are considered as deemed salary income.

The government will soon issue a list of benefits taxable to employees as perquisites; it is expected to closely resemble the list that existed prior to the 2005 introduction of the FBT. Employer contributions to an approved superannuation fund that exceed INR 100,000 per year would be taxable to the employee. The taxation of shares provided for free or at concessional rates would be based upon the fair market value (FMV) on the date on which the option is exercised less any amount paid by the employee. The government would set the formula for calculating FMV. Employers would be required to deduct tax on the pequisites.