Perquisites

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Rahul Rana (Querist)
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02 December 2008 Dear Sir,
i want to know if an employeer provide a facilities of Concessional loan @6% on reducing balance.So how i will caculate value of perquisite.

Thanks,

Rahul Rana

Rajdeep Pawar

Rajdeep Pawar (Expert)
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02 December 2008 Please follow the following procedure :
Step-1 : Find out the maximum outstanding monthly balance of loan.
Step-2 : Find out the rate of interest charged by SBI as on the first day of the relevant previous year in respect of loan for the same purpose advanced by it. [Rate Chart is large, provide me the following detail relating to loan taken by you:
(i)whether it is a housing loan, car loan, two wheeler loan, educational loan or personal loan.
(ii) tenure of loan
(iii) amount of loan
(iv) year of lending]
Step -3 : Calculate interest for each month of the previous year on the outstanding amount mentioned in Step-1 at the rate of interest given in step-2.
Step -4 : Taxable value of perquisite will be interest calculated in step-3 minus interest actually recovered from the employee during the previous year.