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POSTED BY ON July 12, 2012 5:13 pm COMMENTS (4)
Dear All
Request you to clarify me, whether I have to pay Income Tax on Soft loan to be taken from my company. They are offering Interest Free loan (which will be recovered back in 12 EMI).
Pl. Note: Last year, my company gave me 4000/- for purchasing mobile phone and deducted 10% as Income tax.
Am I required to pay IT on Soft loans? If so, at what rate I have to pay IT?
Pl. clarify., Regards, RAM
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In which case , you can claim back the tax cut into your returns !
Dear Ram, if these soft loan are below the limit of 20L Rs. in a FY, the same is not chargeable to tax. For the loan amount in excess of 20K, the same ‘ll be taxed for perquisite value of the interest benchmark against SBI’s Personal Loan interest for calculation of perks.
Thanks
Ashal
Dear Mr. Ashal
Pl. clarify, whether the limit is 20 L or 20 K (You mentioned both in ur repl).
In my case, i am eligible for Interest free loan of 100,000/- and I have to repay in 12 equal EMIs. How much IT would be deducted? I don’t want to waste your time by asking exact number. Just approximately tell me, the IT deduction will be Less than 2000/- or more?
Regards, Ram
Dear Ram, I’m sorry for the typo error. It’s 20K tax free loan. So in your case, as the amount is 1L Rs., the interest @ 18% ‘ll be treated your income from perks. So this imaginary interest payment of 18% ‘ll be added to your income & ‘ll be taxed @ your slab rate. Note calculate on your own, what ‘ll be this interest amount.
Thanks
Ashal