Query regarding interest free loan with sec 24 (b) of house
This query is : Resolved
18 August 2015
Dear Sir,
while going through my previous ITR 1, I observe that the value of taxable perquisite i.e. interest free concessional loan amount is first shown as taxable part of salary, after that it is added with sec 24 (b) income from house property which results in increased house property income...
another view is that interest free concessional loan is first added in salary then deducted in house property income as it increased the negative self occupied loss from house property.
i want to know the connection of interest free concessional loan with sec 24 (b) of house property.
or simply
if i am having interest free loan perquisite and paying interest on housing loan then what is the treatment of these things in ITR 1
thanks.
while going through my previous ITR 1, I observe that the value of taxable perquisite i.e. interest free concessional loan amount is first shown as taxable part of salary, after that it is added with sec 24 (b) income from house property which results in increased house property income...
another view is that interest free concessional loan is first added in salary then deducted in house property income as it increased the negative self occupied loss from house property.
i want to know the connection of interest free concessional loan with sec 24 (b) of house property.
or simply
if i am having interest free loan perquisite and paying interest on housing loan then what is the treatment of these things in ITR 1
thanks.
18 August 2015
Interest free loan is a perquisites in the hands of employee. Add this to salary and you can sett of HP loss with this gross salary.
19 August 2015
U r correct but my ques is that I observed that my ca who filled my all previous returns first added perqusit part in salary head then added that perq in house prop income also. Due to which HP negative income is increasing by that amount.
I want know is this treatment correct
I want know is this treatment correct
20 August 2015
From my view point there is no connectio between Interest free loan which is taxed as perquisites and inerest on housing loan.
No where is linking point between sec 17 and 24. interest which is taxed as perquisite you cannot claim in 24 and need not add in 24
No where is linking point between sec 17 and 24. interest which is taxed as perquisite you cannot claim in 24 and need not add in 24
19 July 2025
Item Treatment in ITR 1
Interest-free/concessional loan value (perquisite) Added under Salary Income
Interest paid on housing loan Deducted under Section 24(b), House Property Income
No addition of perquisite value to house property income Correct treatment is no addition
Interest-free/concessional loan value (perquisite) Added under Salary Income
Interest paid on housing loan Deducted under Section 24(b), House Property Income
No addition of perquisite value to house property income Correct treatment is no addition
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