Home loan received at concessional rate by employee

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 November 2014 Mr. A. is working at one of well reputed company. He is currently designated at A.M. and company is giving him a home loan at concessional rate of interest @ 9.50% p.a. whereas actual bank int. rate for home loan is 11.50%. However, Employee is paying the EMI to bank out of his salary.

Kindly advice whether such loan will be considered as perquisites and is taxable?? If yes, What will be the tax liability at the year end after making payment of EMI? whether such home loan is considered as fringe benefits?

08 November 2014 However employee is paying EMI to bank out of his salary? What does that mean? Who has given loan Bank or Company? or you mean Banking Company?.....

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Querist : Anonymous

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Querist : Anonymous (Querist)
10 November 2014 Company is automobile mfg. co. or any other product manufacturing co.. Loan is giving by such manufacturing co. sorry, query is modified as Employee paying EMI to it's company (employer) then what will be the tax treatment?
Also, please advice what if company (employer) is banking company?

10 November 2014 Banking company there is a tribunal case law....The company selling its own product at concessional rates should NOT be deemed to be perquisites.

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Querist : Anonymous

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Querist : Anonymous (Querist)
10 November 2014 thank you amol sir. but if any manufacturing company such reliance petro. or tata steel giving a loan of rs. 60 lakhs at concessional rate. and employee paying EMI to company (employer). then how will be the tax treatment and what will be the tax liability?

10 November 2014 In aregular scheme of RPPL or Tata giving loan at concessional rate may NOT be added as perquisites. (Tata group has such scheme of giving loan at concessional rate. This scheme is approved in their WAGE agreement)

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Querist : Anonymous

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10 November 2014 thanks a lot sir...

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Querist : Anonymous

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Querist : Anonymous (Querist)
10 November 2014 dear sir,

i have further question with regards to earlier query. If employee is making payment of home loan EMI, then will it be eligible for deduction in calculation of net tax liability??


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