Webinar - How to set pay ranges in the context of pay transparency legislation
LOAN BENEFITS
1.
2. CONTENTS
• Home loan
• Car loan
• Personal loan
• Preferential loan
• Loan benefits in tax
3. LOAN BENEFITS
• Our company provides different loan benefits to its employees.
• Any employee is entitled to claim the loan benefits for
• Home loan
• Car loan
• Personal loan
• Preferential loan
• The rates of interest is lower than that of standard market rates.
4. LOAN BENEFITS IN TAX
Loans provided to employees are taxable as per Rule 3(7)(i) of the
Income Tax rules.
However, the actual tax amount on loan provided will depend on the
interest rate the employee pays.
According to the income tax rules, if loans are provided at a rate which
is less than the interest rate charged by the State Bank of India (SBI),
then the employee who receives the loan is deemed to have received
the loan at a concessional interest rate. The extent of “concession” is a
benefit which is taxable.
