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Perquistes on Loan

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19 September 2010 One of my client (working for a US based company)has taken loan of 50 lac Rs from Employer.Interest Rate charged by Employer is 0.5% per year.Employer(company) is based in USA and has branch office in India.
Does this arise any Tax Liability on either Employer or Employee

20 September 2010 As the Employee has renders service in India.

Hence, Employer is liable to deduct TDS on the perqs of Interest on Home loan.




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