Perquisite

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Avin Shettigar (Querist)
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21 August 2011 Mr.X has taken interest free loan of Rs.40 lakh from his employer and entire amount is O/S at end of the financial year 2010-11. How to compute the perquisite amount and what is the rate applicable?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 August 2011 Take Rate Prescribed by
State Bank of India for the similar type of loan. Calculate Interest on that rate.
Say if it is 10% .

calculate Interest for the period for which such amount remains outstanding.

The Interest amount will be Perquisite.

Avin Shettigar

Avin Shettigar (Querist)
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21 August 2011 What is the SBI interest for the AY 2011-12

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Ravi Jhamb

Ravi Jhamb (Expert)
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21 August 2011 As per Section 10 (2) Perquisite "Interest free loan taxable in the hands of employee for which period it is o/s. The rate of interest charge by SBI or Income Tax Act on 1st day is considered after changes in rate is not acceptable. The rate of interest is given in SBI Website.