https://www.taxtmi.com/caselaws?id=13460 The court held that interest subsidy paid by the employer directly to the financial institution providing loans is a perquisite under section 17(2)(iv) of the Income-tax Act. It upheld the deduction of tax at source on the interest subsidy but noted that taxing interest subsidy paid to financial institutions while exempting subsidies paid to employees would be discriminatory. The court ruled that interest subsidies should be treated outside the scope of section 17(2)(iv) until the assessment year 2002-03, granting exemption to the petitioners for that period. From April 1, 2002, tax on interest subsidy should be recovered in accordance with the Act and Rules. en-us Mon, 12 Jun 2006 00:00:00 +0530 Fri, 29 May 2009 10:52:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13460 The court held that interest subsidy paid by the employer directly to the financial institution providing loans is a perquisite under section 17(2)(iv) of the Income-tax Act. It upheld the deduction of tax at source on the interest subsidy but noted that taxing interest subsidy paid to financial institutions while exempting subsidies paid to employees would be discriminatory. The court ruled that interest subsidies should be treated outside the scope of section 17(2)(iv) until the assessment year 2002-03, granting exemption to the petitioners for that period. From April 1, 2002, tax on interest subsidy should be recovered in accordance with the Act and Rules. Case-Laws Income Tax Mon, 12 Jun 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13460