Interest free loan

This query is : Resolved

N.BALA RANGANATH (Querist)
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07 March 2012 I have taken Rs.1,00,000 interest free loan from my employer on 15/03/12. Repayable in 12 equal instalments. What is the amount of tax on above FBT.

Thanks in advance.

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)
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07 March 2012 FBT is not applicable now.
The interest not chargeb by employer will be taxable in your hands as perquisite at SBI notified rate for that financial year.

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Mihir Doshi

Mihir Doshi (Expert)
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07 March 2012 Agree with expert.
FBT is not applicable.
Interest rate would depende upon purpose for which loan is taken. If its for personal use then interest rate is 13.25% p.a.

Thanks
Mihir Doshi

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