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CA Intermediate · Taxation · Salaries

Mr. Sudhir, an employee of Bharat Metals Ltd, was granted a loan of Rs 6,00,000 by the employer on 1 April 2026 at 4% per annum for purchasing a car; no repayment was made during tax year 2026-27. The SBI lending rate on 1 April 2026 for similar loans was 10% per annum. The loan is not for any specified medical treatment. The employer also paid his club membership fee of Rs 30,000 (not an ordinary membership for general facility, and used for personal purposes). What is the total value of these two perquisites, taking the interest perquisite on the basis of the lending-rate difference for the full year and the club fee as taxable in full?

The total perquisite is Rs 66,000. The concessional loan gives a benefit equal to the 6% difference between the SBI rate of 10% and the 4% charged on Rs 6,00,000, which is Rs 36,000, and the club fee used personally is taxable at Rs 30,000.

  1. ARs 36,000
  2. BRs 66,000Correct
  3. CRs 30,000
  4. DRs 96,000

Explanation

Interest perquisite = (10% - 4%) x 6,00,000 = Rs 36,000. Club fee paid by employer for personal use is taxable at Rs 30,000. Total = Rs 66,000. Rs 36,000 omits the club fee.

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