CA Intermediate · Taxation · Salaries
Mr. Sanjay Gupta, an employee of Vindhya Industries Ltd., was given the following loans during tax year 2026-27, all outstanding throughout the year: (a) a housing loan of Rs 12,00,000 on which he pays interest at 5% p.a.; (b) a loan of Rs 1,00,000 for treatment of a specified disease under the prescribed rules, interest-free; (c) a loan of Rs 15,000 for personal use, interest-free. The State Bank of India lending rate for similar loans on 1 April 2026 was 9% p.a. What is the taxable perquisite for the loans for tax year 2026-27, assuming the amounts below are computed on the stated balances?
The taxable perquisite is Rs 48,000. Only the housing loan counts, taxed on the 4% gap between the SBI rate of 9% and the 5% he pays, on Rs 12,00,000. The specified-disease loan is exempt, and the Rs 15,000 loan falls within the Rs 20,000 de minimis limit.
- ARs 48,000Correct
- BRs 60,000
- CRs 52,000
- DRs 1,08,000
Explanation
The housing loan perquisite is the interest differential: (9% - 5%) x 12,00,000 = Rs 48,000. The Rs 1,00,000 loan for a specified disease is exempt, and the Rs 15,000 loan is exempt because the loans not otherwise exempt aggregating up to Rs 20,000 are ignored. Hence total is Rs 48,000. Including the medical loan would give Rs 52,000, and taking the full 9% on the housing loan gives Rs 1,08,000.
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