My company decided to give interest free salary advance to employees who wish to by mobile phone for official use. Maximum advance amount allowed is Rs.10000/- which will deduct from the salary of employee in six monthly equal instalments.
Whether company need to consider interest at normal bank rate as his perquisite for TDS purpose.
(Can we take the stand that advance is below Rs.20000 and which is exempted) Thanks
06 January 2015
Loan Upto Rs. 20,000 per year are exempt from charging deemed interest for the purpose computing Income under the head of salary. Therefore, there will be no deemed additional income.
CAclubindia
