Interest free loan

From who's point of view u want to know the answer........company or employee??

HI,sweta, here perquisite value of interest free loan is calculated on basis of sbi loan interst rate, which will be given in problem, from 01/04/2008 to 31/08/2008 - ineterst rate on 20 lacs from 01/09/2008 to 30/09/2008 - interest rate on 20 lac - 25000/-i.e on 1975000/- & ---------------------- so on..................

 HI, sudhanshu , perquisite value always on basiss of employee, it will never on company valuation.

As per IT interest free loan are valuate as perquisite for calculation the income base rate is loan interest rate from SBI as mentioned by ayush and minus the actual interest paid (if any) it is applicable for all types interest free loans. for more details please refer incometaxindia.gov.in

>>  Rajesh

There are five steps. 1) Find out SBI’s Rate of Interest for same purpose for which loan was taken as on the first day the FY in which loan was taken 2) Find out Maximum outstanding monthly balance 3) Calculate interest for each month with SBI rate on the outstanding amount as mentioned in step-2 4) From the total interest calculated for entire year, deduct interest if any, paid to employer during the year and 5) Balancing amount is value of perquisite.

 THANKS CA-ASHOK SETH

Thanks Ashok.

Dear Mr. Ashok & all ,

just i want to confirm that if the employee not paid the loan in the FY 2008-09 .

thn Perk. is applicable or not. If , yes , Is the same process as above mentioned or not?

Dear Mr. Ashok & all ,

just i want to confirm that if the employee not paid the loan in the FY 2008-09 .

thn Perk. is applicable or not. If , yes , Is the same process as above mentioned or not?

the same would be applicable.