ITAT Said: Interest-free loan from employer is taxable: Well, if you are one of those people who is looking for the Interest-free loan from your employer then you all should know that the Income Tax Appellate Tribunal is confirmed tax on those loans. Even though, the valuation of the taxable benefit or the taxable benefit or prerequisite cannot be done in an ad-hoc manner and has to be computed as per the prescribed formula under the Income Tax Act. Sources ate saying that the people.
Also, the reports are confirming that this whole idea came up with the appeal the commissioner of I-T (appeals) held that the I-T officer had rightly treated the value of the interest-free loan as a taxable perquisite in the hands of the employee. Also, he stated that the valuation cannot be done in an ad-hoc manner. You all should know that whole Indian isn’t expecting something like that from the IT.
Now, you all need to understand that I-T Act rules, a perquisite value is based on the rate charged by SBI on April 1 of the financial year in which the employee received the loan. Now, all the employees who are seeking for the loan from their employers can get it but they have to pay tax on that loan. Also, the limit of tax will be decided by the SBI rules.