taxability of Subsidy in interest rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2009 A Company is giving subsidy in interest rate for home loan to their employee.At the time of resignation (if within 5 years of taking loan)the employee have to pay back all the subsidised interest to the company.At the time of receiving the subsidised interest it was taxable as perks in the hand of employee.So at the time of paying back the interest can the employee ask for tax deduction for the same amount?

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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17 November 2009 The interest paid can be claimed in return as loss under the head house property, please take certificate from the company stating the interest is paid towards interest on home loan received from the Company as there is no restriction on the type of lender subject to other conditions( 1.50 lacs,period of construction, period of payment etc.)