SBI’s Rate of Interest for Perquisite Valuation
Introduction
The taxable value of the perquisite arising from free or concessional loans extended by employers is determined based on the State Bank of India’s (SBI) interest rates as of April 1 of the relevant financial year.
Key Provisions
- Applicability
- Perquisite tax applies to loans for personal purposes such as education, medical treatment, or housing when provided interest-free or at concessional rates.
- Tax liability extends to loans availed by the employee, their family, or dependents.
- Loans up to 20,000 or for specified medical treatments are exempt from tax.
- Valuation of Perquisite
The perquisite value is the difference between interest at SBI rates and the actual interest paid by the employee.
For rate of interest, visit the website of SBI from the following link:
https://sbi.co.in/web/business/information/interest-rates-perquisite-calculation