The Supreme Court recently affirmed that loans provided at concessional rates to employees are considered fringe benefits.
Recently, bank unions approached the Court stating that under Rule 3(7)(i) was arbitrary and unconstitutional by using SBI’s prime lending rate as a benchmark. However, the Supreme Court affirmed the rule.
🔍 What are Fringe Benefits and Which Income is Taxable in the Hands of Employees?
- Fringe Benefits: It means loans provided to employees at interest rates lower than SBI’s lending rates are treated as concessional.
- Taxable Income: The difference between the concessional loan rate and the SBI rate is taxable as perquisites under the head Salary income.
Stay informed about your benefits and taxation! ⚖️💼
