Calculation of perquisite interest free loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 Hi Experts,
Plz clarify my following doubt in calculation of interest free loan to employee perquisite, assume Rs. 1 lakh interest free loan was given to employee on 17/12/2015......1) will i have to find out SBI interest as on 1/4/2015 or as on 17/12/2015 to calculate the perquisite...2) weather interest will be calculated from april or december....3) will interest be calculated day wise or month wise,

Thanx & Regard
Shivam Shukla

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 April 2016 1.You have to find out the interest rate on 01/04/2015( first day of the relevant financial year) to calculate perquisite
2. Interest will be calculated from December
3. Monthly basis, On the maximum outstanding of the particular month

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 Sir... some tax experts has advised that interest should be calculated from april No matter when the loan was provided to employee during the FY...

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 April 2016 Provision is suggesting the monthly basis,the maximum outstanding. practically if you calculate from April then monthly balance is zero from April to November.

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 Sir loan upto 20000 is exempt... assume if I
Show this 1 lakh in 5 part i mean 20000, 20000 then it will be exempt or taxable

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 April 2016 We need to treat as aggregate amount of loan given during the financial year. if more than one loan or multiple loan aggregate more than Rs.20000 for the financial year is treated as taxable