Loan

This query is : Resolved

Prakash Khandelia (Querist)
Follow

27 March 2009 Plz let me know while calculating perquisite value of interest on loan ,the rate of interest as applicable on 1st of April 2008 of SBI will be taken or average rate is to be taken

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
Follow

27 March 2009 The rate whihc actually applicable to your loan is to be taken.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

27 March 2009 undoubtly, The SBI rate on first April

Upgrade to CAclubindia Pro. Subscribe Now!

Prakash Khandelia

Prakash Khandelia (Querist)
Follow

28 March 2009 plz let me know whether interest charged on monthly outstanding balance is for only one month or more?

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

28 March 2009 SBI Rate

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

29 March 2009 Interest is calculated on the maximum outstanding monthly balance. Maximum outstanding monthly balance means the aggregate outstanding balance for each loan as on the last day of each month.
so even if loan is taken on 31st of Apr, the interest shall be taxable (whether or not ur employer charges any thing from u or not )