Dear Auditors
I took some 2.4L from my company as interest free loan and I have to pay Rs. 10K on each month for 2 years.
I want to know what is the income tax benefit on this loan other than the perquisite tax. The EMI will be shown in my slary slip as detections, along with other detections like IT, PF, PT etc.
Advance Thanks
Dr R Kannan
Dear Mr Kannan,
There are no tax benefits on this loan. Its a taxable perquisite and a rough calculation gives a tax perquisite value of Rs 20000.
Hi
yes since its a interest free loan more than 20000, the perquiste value is taxable in employee hand.
Thanks
Mukesh
CAclubindia
