Fringe Benefits Tax

This query is : Resolved

M.S.Mohiddin

M.S.Mohiddin (Querist)
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28 April 2008 IS EDUCATIONAL LOAN PROVIDED BY THE EMPLOYER TO AN EMPLOYEE EITHER ON INTEREST FREE ON CONCESSIONAL RATE OF INTEREST IS SUBJECT TO FRINGE BENEFIT TAX?

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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28 April 2008 if loan is given to an employee for education purpose is not liable to fbt if loan is interest free then as per SBI int rate is added to employees income & if loan is given concessional rate then diff of SBI rate & con.rate is added to employees salary.

M.S.Mohiddin

M.S.Mohiddin (Querist)
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29 April 2008 is loan given to employee for educational purpose doesn't falls under employees welfare.

Fringe benefits is defined as any benefit,emenity or facility provided by the employer to the employee except when tax is paid by the employee or when tax is paid by the employer.As per this definition can an educational loan is not a fringebenefit since it is a facility provided by the employer to employee.

When the rate of interest is higher than SBI rate it is not perequisite.

whne the rate of interest is lower than SBI rate the differential rate is added to the employees income

please guide me on these lines
the act specifically includes medical loan but not other loans in FBT scope