Interest on loan to employee's
This query is : Resolved
Gurdeep Singh
(Querist)
13 February 2013
Hi
i know that interest to be added to his income as perquisites if employer has provided a loan to his employees while calculating his/her tax liability.
But what %age need to be charged that is my query.
regards
GS
i know that interest to be added to his income as perquisites if employer has provided a loan to his employees while calculating his/her tax liability.
But what %age need to be charged that is my query.
regards
GS
CA PARAS BAFNA
(Expert)
13 February 2013
The amount to be included in the perquisite is the difference between State Bank of India Rates for the similar Loan and Rate Charged by the employer.
.
Suppose SBI on a particular Loan charges 12% p.a. rate (say Rs 12000), whereas the employer is charging from the employee @ 2% (say Rs 2000), so amount corresponding to 10% ( i.e. 10000) has to be added as perquisite.
.
.
Suppose SBI on a particular Loan charges 12% p.a. rate (say Rs 12000), whereas the employer is charging from the employee @ 2% (say Rs 2000), so amount corresponding to 10% ( i.e. 10000) has to be added as perquisite.
.
14 February 2013
To add to what Mr Bafna says, the SBI rate as on 01st April of the relevant financial year is to be considered
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