perquisite in respect of loan at concessional rate (SALAY)

This query is : Resolved

CA Abhishek Singh (Querist)
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24 April 2009 DEAR ALL

INTEREST ON COCESSIONAL RATE SHOULD BE COMPUTED ON O/S BALANCE AT MONTHS END.BUT OS BALANCE WILL LOAN AMOUNT-PRINCIPAL-INTEREST OR ONLY PRINCIPAL.

EXAMPLE. LOAN 600000 , PRINCIPAL 9000 INT 3000

MAX O.S. BALANCE = 600000-12000=588000

SHIVAM GROVER

SHIVAM GROVER (Expert)
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25 April 2009 IF U PAY INTEREST THEN INT DEDUCTED BUT IF INYOUR INSTALLMENT PRINCIPAL AND INT BOTH INCLUDED THEN BOTH DEDUCTED AND REMAINING LEFT WITH U TO PAY

Rajni Kant

Rajni Kant (Expert)
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27 April 2009 The difference of Interest from SBI Lending rate should be calculated on monthly reducing balance i.e. Principal less Interest and will be added in the value of perquisites.

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taxindiaconnect

taxindiaconnect (Expert)
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02 May 2009 The perquisit is to be calacualted by taking the SBI PLR as benchmark interest rate. The differnence between SBI PLR and concessional interest chaged by the employer is to be taken to calculate the perqusite value taxable in the hands of the employee. The interest has to calculated on the monthly outstanding loan.