Interest free loan from employer.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2014 Good Morning Experts,
I have a question, You all are requested to please response.
Employee A take Interest free Home Loan from his employer for Rs. 300000/-. For instance, SBI provides home loan on Interest @10%. So would Interest amount ,e.g. Rs. 30000/-, be taxable for A.Y. 2014-15. Because IT Deptt. has provided exemption on Home Loan Interest upto Rs. 150000/-.
So Would his Interest free loan be taxable ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 May 2014 you are confusing two different things. the interest free loan is covered under salary. and shall be taxable.

with regards to deduction under house property, that is available only if you actually incur the interest liability.

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2014 Thank You Sir... One more ques. Will the amount of Interest, in case of Interest free loan from employer, clubbed with the amount of salary or is it will be shown any other place in ITR...???

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