Hi,
I am new to this forum.
But I have an very important question to discuss with someone who can guide me regarding to my enquiry.
In my BPO,I prepare the salary stracture and all other information.
An employee in my company have a salary slab of Rs.40,000 p.m. and his CTC is Rs. 4,80,000/- p.a. The employee is in the senior position.
He is on this slab for last 1 year and he have borrowed a loan of Rs. 3,80,000/- from the company on Jan, 2007 & from his salary every month Rs. 30,000/- is deducted as the loan installment. The company is charging no intrest on this loan.
Now the question is that, can we charge him for Income Tax for this year. If yes, what rules need to be followed. Please advice.
And on his salary slip how can we show the deductions of Rs. 30,000/- as till now the employee have been charged with 4 installments against the loan. If you can show me with any format or example, it will help me.
If you have any more question to ask me regarding this enquiry of mine, please mail me on
Hope you will guide with an solution.
From India, Delhi
I am new to this forum.
But I have an very important question to discuss with someone who can guide me regarding to my enquiry.
In my BPO,I prepare the salary stracture and all other information.
An employee in my company have a salary slab of Rs.40,000 p.m. and his CTC is Rs. 4,80,000/- p.a. The employee is in the senior position.
He is on this slab for last 1 year and he have borrowed a loan of Rs. 3,80,000/- from the company on Jan, 2007 & from his salary every month Rs. 30,000/- is deducted as the loan installment. The company is charging no intrest on this loan.
Now the question is that, can we charge him for Income Tax for this year. If yes, what rules need to be followed. Please advice.
And on his salary slip how can we show the deductions of Rs. 30,000/- as till now the employee have been charged with 4 installments against the loan. If you can show me with any format or example, it will help me.
If you have any more question to ask me regarding this enquiry of mine, please mail me on
Hope you will guide with an solution.
From India, Delhi
My salary package for Rs. 600000 P.A. Rs. 9600/- Conve Allow. 120000/- HRA. Tuition Fees 50000/-, Investment 40000/- Lic, Mediclaim 3500/-,
Kindly help me about tax calculation.
Bijender Vats
Cont. No. 9310667075
9312684491
E ID :-
Kindly help me about tax calculation.
Bijender Vats
Cont. No. 9310667075
9312684491
E ID :-
Hi,
You need to charge the income tax.As Intrest free loan exceeding 20000 is a perquisite.
you need to follow the below calculation.
Value of perquisite would be calculated on monthly basis as Follows
Persquite= SBI loan rates for similar loans on maximum monthly outstanding balance - intrest recovered from employee.
And there is an exception in your case.
If the amount taken by your employee is in Treatment of specified diseases as mentioned in rule 3A of the income Tax Rules.In that case its not an perquisite in the hands of employee.
Hope this had clarified your doubt.
Regards
Jai
From India, Pune
11You need to charge the income tax.As Intrest free loan exceeding 20000 is a perquisite.
you need to follow the below calculation.
Value of perquisite would be calculated on monthly basis as Follows
Persquite= SBI loan rates for similar loans on maximum monthly outstanding balance - intrest recovered from employee.
And there is an exception in your case.
If the amount taken by your employee is in Treatment of specified diseases as mentioned in rule 3A of the income Tax Rules.In that case its not an perquisite in the hands of employee.
Hope this had clarified your doubt.
Regards
Jai
From India, Pune
HI,
What Jai has said is correct, Interest free loan attracts Perq if it extends 20k in a financial year,
as per the statement the employee has taken a loan on Jan 2007 & the per month loan deduction is 30K ( 30K*12= & balancing of 20 K in Feb month if this is the scenerio then there is no Tax libility on this employee for CURRENT FINANCILA YEAR,
if your date is jan 2008 & he has paid 4 instalments then the perq is calcualted from april 2008 till march 2009 on reducing balance ie minus no of instalments deducted ( let us assume 3 last year he has paid) ie will be 290000.00( this will be your opening balance) on this perq should be calculated after deducting april instalments( 260000*12.75%( assuming it as soft interest free loan)/12) this has to be done on reducing balance.
Loan Perq varies from Loan to Laon hence please check for what purpose the individual has availed the loan for.
Regards
Rajeev
SAP HR Consultant
From India, Bangalore
What Jai has said is correct, Interest free loan attracts Perq if it extends 20k in a financial year,
as per the statement the employee has taken a loan on Jan 2007 & the per month loan deduction is 30K ( 30K*12= & balancing of 20 K in Feb month if this is the scenerio then there is no Tax libility on this employee for CURRENT FINANCILA YEAR,
if your date is jan 2008 & he has paid 4 instalments then the perq is calcualted from april 2008 till march 2009 on reducing balance ie minus no of instalments deducted ( let us assume 3 last year he has paid) ie will be 290000.00( this will be your opening balance) on this perq should be calculated after deducting april instalments( 260000*12.75%( assuming it as soft interest free loan)/12) this has to be done on reducing balance.
Loan Perq varies from Loan to Laon hence please check for what purpose the individual has availed the loan for.
Regards
Rajeev
SAP HR Consultant
From India, Bangalore
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