Vidhu Duggal & Co....
Loans Provided at Concessional Rates to Employees are Fringe Benefits and Taxable in the Hands of Employees
Loans Provided at Concessional Rates to Employees are Fringe Benefits and Taxable in the Hands of Employees

27 May, 2024

Loans Provided at Concessional Rates to Employees are Fringe Benefits and Taxable in the Hands of Employees

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! ⚖️💼

Let's Talk

Free Consultation

Related Post

Post Img

Major Changes in Budget for Salaried Individuals

Post Img

✨ 3 Mistakes to Avoid When Choosing a Free Zone in the UAE ✨

Post Img

How to apply PAN by foreign Company in India?

Post Img

𝐏𝐞𝐧𝐚𝐥𝐭𝐲 𝐀𝐥𝐞𝐫𝐭 𝐟𝐨𝐫 𝐍𝐨𝐧-𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐰𝐢𝐭𝐡 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐓𝐚𝐱 𝐑𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐃𝐮𝐛𝐚𝐢

Post Img

Renewal of Trusts Extended – Section 12A Amendment Explained

Featured Post

Post Img

Foreign Company Operating Through a Liaison Office in India: PE Risk Assessment and Structuring Advice

Post Img

Passport Is Not Proof of Tax Residency: New MEA Clarification Explained

Post Img

Opportunity to increase share of global manufacturing in India: FedEx CEO

Post Img

Breaking: UAE Joins the Global Tax Club!

Post Img

Asci puts more onus on financial, health influencers in new ad guidelines

Contact us

Get In Touch With Us