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Former Member

Imputed income calculation in IT0045.

Dear Experts,

Hope all of you are doing well.

My client uses IT0045 to provide company loans and its repayment. Previously client was giving interest free loan (debit interest field value "0")and reference interest rate as 15.25. (I think this field is considered for tax calculation in Form 16, not sure)

Now client wants to give loan with interest(for example 10%). SAP has already given field Indiv. interest rate ("debit interest" in loan configuration). Now I have following queries:

i) How effective interest rate gets calculated while creating IT0045.

ii) What is purpose of Indiv Ref Interest Rate field and how its calculation is done in Form 16 for tax purpose?

iii)If we maintain value in Indiv. interest rate (for example 10%) and Indiv. Ref. Interest as 15.25, do I need to do any other configuration changes also to calculate tax impact and all?

Experts urgent help is needed here.

Thanks and Best Regards,


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  • author's profile photo Former Member
    Former Member
    Posted on Oct 21, 2015 at 05:52 AM

    Please assist.

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