As per Income Tax rules if Interest free/concessional loan is provided by the employer to employee , it will be treated as perquisite to the employee and it as per Income tax rules , it valuation should be done and added to the income of the employee. For interest free/concessional loan valuation interest rate of State Bank of India as applicable on first day of the financial year is to be considered. For Financial year 2012-13 , interest rate as applicable on 01.04.2012 is required ,which has been provided in the table below.
State Bank of India: Interest Rates on 1st April, 2012 ,For the purpose of computing perquisite valuation
Interest rates as on 1st April, 2012 on various loans in Personal Segment advances are as under #docx