Form 16
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 March 2016
Employer provide to loan employee as interest free loan , so in from 16 in which place show this amount
11 March 2016
Interest Free Loan provided by the employer is exempt from tax in the following 2 cases –
If the loan has been provided for medical treatment in respect of diseases specified in rule 3A, it shall be exempt from tax. However, in this situation if an amount is received by the employee as a reimbursement under a medical insurance scheme, the exemption here shall not apply to this reimbursement and it shall be taxed as a perquisite.When the aggregate amount of loan disbursed to the employee is Rs 20,000 or less.
When your employer provides you or any member of your household, an interest free loan or a loan at a concessional rate – it is chargeable to tax as a perquisite. It may be specified as ‘an interest free or tax free’ loan when disbursed– however it shall be taxable as part of your salary.
It should be shown in PART-B under value of perquisites u/s 17(2) form No-12BA where ever applicable
If the loan has been provided for medical treatment in respect of diseases specified in rule 3A, it shall be exempt from tax. However, in this situation if an amount is received by the employee as a reimbursement under a medical insurance scheme, the exemption here shall not apply to this reimbursement and it shall be taxed as a perquisite.When the aggregate amount of loan disbursed to the employee is Rs 20,000 or less.
When your employer provides you or any member of your household, an interest free loan or a loan at a concessional rate – it is chargeable to tax as a perquisite. It may be specified as ‘an interest free or tax free’ loan when disbursed– however it shall be taxable as part of your salary.
It should be shown in PART-B under value of perquisites u/s 17(2) form No-12BA where ever applicable
11 March 2016
Loan amount need not be shown in form 16. But calculate the interest at bank rate and show it as a perquisite u/s 17 (2) (viii) in clause 1 (b) of Part B of form 16.
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