Query regarding interest free loan with sec 24 (b) of house

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shobhit (Querist)
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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.

Shijith

Shijith (Expert)
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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.

shobhit

shobhit (Querist)
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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

Shijith

Shijith (Expert)
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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

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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

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