Interest free loan taken from employer

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Sankar Chakraborty (Querist)
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17 August 2013 an employee received Rs. 10.00 lac by A/c payee cheque as interest free loan from his employer for purchasing a redential flat what will be the tax impact in the hands of employee ?

will it come under 56(2)or will be treated as perquisite of the employee ? however the loan amount is being repaid by the employee Rs. 10000 per month, loan taken in march 2013

please answer

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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17 August 2013 Nothing is taxable in the hands of the employee but if the company has procured the money by way of loan and paying interest then that portion of interest shall be treated as the perquisite in the hands of the employee

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