08-16-2010, 02:50 AM
dada if the employer has charged 12% than how come you are calling it interest free???
furthermore income tax ordinance 2001 section 13(7) and 13(8)
caters the situation when loan is interest free or interest is lower than the bench mark rate however in the situation you presented neighther of two things are present.
and as no deductions are allowed under head salary thus employee wont be able to claim the benefit of interest paid as expense..neighter we would treart is as income of employee
furthermore the tax section<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by dashing_dear</i>
<br />What will be treatment of Interest Free loanin case the employer has charged more than the Benchmark rate e.g. benchmark rate is 11% but employer has charged 12% and the amount of loan is 900,000.
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furthermore income tax ordinance 2001 section 13(7) and 13(8)
caters the situation when loan is interest free or interest is lower than the bench mark rate however in the situation you presented neighther of two things are present.
and as no deductions are allowed under head salary thus employee wont be able to claim the benefit of interest paid as expense..neighter we would treart is as income of employee
furthermore the tax section<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by dashing_dear</i>
<br />What will be treatment of Interest Free loanin case the employer has charged more than the Benchmark rate e.g. benchmark rate is 11% but employer has charged 12% and the amount of loan is 900,000.
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