Applicability of tds
This query is : Resolved
24 January 2014
Dear all,
A company is providing Interest free loan to its employees and a certain percentage of amount is deduced from salary of employees every month.
Now my question is
1)Interest free loan amounts to a taxable perquisites in the hands of employee.
2)I am confused about the nature of amount so provided . is this a loan or an advance salary .
if it is loan than same shall be returned back to the company by the employee not deducted from salary.
if it is advance salary than company should deduct TDS .
moreover a single head is created for both loan and advance
A company is providing Interest free loan to its employees and a certain percentage of amount is deduced from salary of employees every month.
Now my question is
1)Interest free loan amounts to a taxable perquisites in the hands of employee.
2)I am confused about the nature of amount so provided . is this a loan or an advance salary .
if it is loan than same shall be returned back to the company by the employee not deducted from salary.
if it is advance salary than company should deduct TDS .
moreover a single head is created for both loan and advance
24 January 2014
Hi,
1 - Interest free loan is taxble as perquisite
2 - It is loan if amt is recovered in more than 1 installments & else it is salary advance.
Thx
1 - Interest free loan is taxble as perquisite
2 - It is loan if amt is recovered in more than 1 installments & else it is salary advance.
Thx
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24 January 2014
Thanks a lot sir ,
plz tell me the rate of interest which should i take to calculate value of perquisite
plz tell me the rate of interest which should i take to calculate value of perquisite
24 January 2014
Pl refer: http://www.hinote.in/loan-provided-to-employees-perquisite-calculation-part-ii
Thx
Thx
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