Hi experts,
One of my employee requires a one time sum of 1 lakh as loan or advance, for admission of his children in college. This amounts to 5 months salary for him.
From a tax perspective, which is preferable for the employer?
If given as advance , TDS must be deducted at 10% by employer at time of payment? And if given as loan, perquisite tax of 30% is payable by the employer?
Kindly clarify on this
Thanking you
Richa
CAclubindia
