30 January 2012
Please advice me in regard to the following query : A Company has paid advance of Rs.50,000/- against salary to his employee.As per my knowledge, this advance against salary is in nature of interest free loan and a perquisite value of interest on loan as computed with reference to Rule 3A of IT Rules,1962 shall be chargeable under the head"Salaries". I have doubt about whether employer has to deduct TDS on the interest amount or not.
CAclubindia
