Concessional Housing Loan given by company and Perquisite Value of interest?

dear

you should get credit of full amount. Since you have paid the tax on the portion paid by your employer it is as good as you are paying the interest.

many of my client working with LIC do face this problem where they are allowed loan at lower rate and the employer is giving rebate on the interest paid by employee only but charging tax on the differential amount of interest.

In such case we do take a certificate from the employer that the 50% interest paid by the employer and the same amount is added in salary and tax on that is deducted by them. based on this certificate we do claim full amount and the ITO allow.

please try in this way

Perquisite Tax Calculation

If loan is not provided by the employer and employer is only contributing part of interest on loan. Interest for sec 24(b) should be total Rs 31051/- because for the sec 24(b) interest payable for the loan should be considered and not the interest paid by the assessee.

The situation will be change if the employer provides loan at a lower rate: In this case for the calculaion of perquisite Rs 15887/- considered under salary head but for Sec 24(b) only Rs15164/- considered because Rs 15887/- is only a notional calculation.

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RE :Concessional Housing Loan given by company and Perquisite Value of interest?

I have availed Concessional Housing Loan given by my company at 5.25% interest rate.

Now consider this: FY 2007-08

Perquisite Value of entire interest as per 12BA = Rs 31051/-

Amount paid by the employee (me) = Rs 15164/-

Amount of taxable perquisite = Rs 15887/-

This portion of the interest (Rs 15887/-) is paid by the company on my behalf and I have paid 30% tax on Rs 15887/- as it is assumed to be my indirect income.

But “u/s 24(b) i.e. Loss from House Property”, I get benefit on only Rs 15164/- and not on Rs 31051/-

Why?

In my Form 16 the company has shown eligible amount for deduction u/s 24(b) = Rs 15164/- and calculated TDS accordingly.

According to me the eligible amount for deduction u/s 24(b) should have been Rs 31051/- i.e. the perquisite value of interest should have been added 1st in 12BA and then should have been subtracted u/s 24(b).

The same thing applies for accrued interest on NSCs, which is added to income as other sources and then deducted u/s 80C as assumed reinvested in NSCs.

Please advice.

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