friends!
somebody pls clear my doubt!!! According to IT act, when an employer gives loan to its employees at an interest lower than SBI interest rate, the difference between the two is to be treated as perquisite and taxed in the hands of employees.
But I was told that there is a Supreme court ruling stating if the company is already paying FBT on the interest component, the same need not be added to perks. I couldnt get the ruling even after searching the internet. Please somebody tell me which of the above is correct. Reply ASAP.
CAclubindia
