VALUATION CONCESSIONAL/INTEREST FREE LOAN TO EMPLOYEE -CALCULATOR ...
Where the original Loan(s) amount does not exceed in aggregate Rs 20000/-.This rule exempted only original amount up to 20000 but if loan if original loan is more than 20000 but present loan outstanding is less than 20000 then there is no exemption available and perquisite remains taxable. if the loans made available for medical treatment (for disease specified ) then there will no perks value ,However the exemption so provided shall not apply to so much of the loan as has been reimbursed to the employee under any medical insurance scheme. How To Value This Perquisite The valuation will be done the basis of interest charged by State Bank of India on first day of relevant previous year .So for the Financial year 2009-10 the rate of SBI as on 01/04/2009 will be applicable .So if Loan to employee or his household is provided at a rate less than SBI rate on first day of the previous year then the difference of interest will be charged as perquisite in hands of employee.So if the Interest rate on which loan is provided is more than Rate charged by SBi on relevant date ,then valuation of the perquisite will be nil.Process to calculate the perks value is Given below. Find Out the Maximum outstanding monthly balance For each loan on the last day of each month. Find Out the rate of interest Charged by the SBI on that type of loan on the first day of relevant previous year (for FY 2009-10 check rate as applicable on Loan from SBI on 01.04.2009) Calculate interest on amounts given in (1)for the full financial year above @ rate of SBI as per (2) above and deducte interest recovered from the employee. The balance will be taxable as perquisites in hand of employee. (i) The value of the benefit to the assessee resulting from the provision of interest-free or concessional loan for any purpose made available to the employee or any member of his household during the relevant previous
