Hello,
Regarding a housing loan from the employer to employee, I understand that if the employer charges no interest, the savings (compared to SBI's rate) will be treated as perquisite in the hands of the employee.
My questions:
a) Is there an upper limit on the housing loan amount?
b) I read that the interest payment is eligible for employee tax deduction (upto limit of Rs.2 lakhs), just like a bank loan. For an unlisted pvt. ltd. company, is this still true? What paperwork must be provided to support this?
c) If the employer charges interest at SBI rates, how will employer report this? Is it considered taxable income for the employer?
Thank you.
CAclubindia
