21 November 2008
In following given cases, whether employer is liable to calculate prequisite:
1) an employee borrowed Rs.10,000/- for personal use., Rs.5000/- for house repairs purpose & Rs. 6000/- for Sisters' wedding purpose. There is no outstanding loan as on 1st day previous year.(he is borrowing 1st time.)
2) An employee borrowed Rs.5000/- during the year. Rs.18000/- is outstanding as on 1st day of previous year. No other loan is borrowed during the year.
22 November 2008
If there is any concession in the rate of interest then the employer is oblied to calculate the perquisite.The value of perquisite shall be the rate between the normal interest rate and interst rate provided by the employer.
22 November 2008
If the aggregate amount exceeds Rs.20K, interest on loan will be a taxable as perquisite. The value of the perquisite is computed as per the rate prescribed by the SBI.
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