MILIND GUMASTE (AM) (108 Points)
19 April 2010Dear Friends
my company
1. gives asset loans to employees @ subsidised rate of interest and recovers mnthly installment with int
2. gives special loans to employees @ 0% interest and recoves in mnthly installments
in both the above cases how we should arraive at perquisite valy and tax liability ??
thanx
Milind
Amir
(Learner)
(4016 Points)
Replied 19 April 2010
Dear Sir,
In case of Loan at concessional rate of interest, value of Perquisite is computed as follows-
Difference in the Amount of Interest calculated at rate of Interest Charged by SBI as on 1st day of the previous year for a similar loan(like car loan, home loan, personal loan,etc) and the rate charged by the employer.
However the above shall not be treated as Perquisite if -
1) Amount of loan does not exceed RS. 20,000
2) Loan is given for some Medical Treatment.
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