Skip to Content
avatar image
Former Member

Loans at a concessional rate

Hi Experts,

As per the taxation law, if the company provides any concessional loan to their employee then the differential amount of the interest rate is treated as the prequisite.

As per the law, " Where the amount of original loan (or loans) does not exceed in the aggregate Rs.20000 is not chargeable to tax."

Is there any setting in the Indian Payroll for this? Plz let me know, as the system is not considering this Rs.20000 limit.

If no standard setting is there, then please let me know the alternative solution to this.

regards

TS

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

2 Answers

  • avatar image
    Former Member
    Nov 30, 2007 at 07:09 AM

    resolved

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Nov 27, 2009 at 08:16 AM

    Hi T.S,

    May I know how you resolved this? Currently, i need to setup this for my company. If the concessional loan exceed Rs20K then it is chargable to tax else no.

    We have another case which is if salary advance more than Rs20K and recover more than 1 month, it should be chargable to tax. Can to setup this?

    Please advise, thank you so much.

    Regards,

    WS

    Add comment
    10|10000 characters needed characters exceeded