Perquisites

1.Interest-free or concessional loan [Sub-rule 7(i) of Rule 3]

Any loan given free of interest or concessional interest shall be a taxable perquisite and calculated as follows:

  1. Find out the ‘maximum outstanding monthly balance’ (i.e. the aggregate outstanding balance for each loan as on the last day of each month);
  2. Find out rate of interest charged by the SBI as on the first day of relevant previous year in respect of loan for the same purpose advanced by it;
  3. Calculate interest for each month of the previous year on the outstanding amount (mentioned in Step 1 at the rate of interest given in Step 2)
  4. From the total interest calculated for the entire previous year (step 3), deduct interest actually recovered, if any, from employee
  5. The balance amount (Step 3-Step 4) is taxable value of perquisite.

Nothing is taxable if:

  1. Loan in aggregate does not exceed ₹ 20,000; or
  2. Loan is provided for treatment of specified diseases

2.Use of moveable assets [Sub-rule 7(vii) of Rule 3]

Value of perquisite is determined as under:

Asset given Value of benefit
(a) Use of laptops and computers Nil
(b) Movable assets, other than –
(i) laptops and computers; and
(ii) assets already specified
10% p.a. of the actual cost of such asset, or the amount of rent or charge paid, or payable by the employer, as the case may be (-) Amount paid by/recovered from an employee

Note: Where the employee is paying any amount in respect of such asset, the amount so paid shall be deducted from the value of perquisite determined above.

3.Transfer of moveable assets [Sub-rule 7(viii) of Rule 3]

Value of perquisite is determined as under:

Assets transferred Value of perquisite
Computers and electronic items Depreciated value [@50% on WDV] of the asset
Motor Cars Depreciated value [@20% on WDV] of the asset
Any other asset Depreciated value [@10% on SLM] of the asset

Note: Where the employee is paying any amount in respect of such asset, the amount so paid shall be deducted from the value of perquisite determined above.

*Note WDV is Written down value and SLM is Straight Line Method

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