Validity of subordinate provision like I.T. Rules: The universal tests pragmatic, fair and just satisfied therefore Rule for valuation of perquisites by way of interest free or concessional loan has been held valid and intra virse the Constitution and Income Tax Act and within powers of Rule Making Authority (CBDT)

Validity of subordinate provision like I.T. Rules: The universal tests pragmatic, fair and just satisfied therefore Rule for valuation of perquisites by way of interest free or concessional loan has been held valid and intra virse the Constitution and Income Tax Act and within powers of Rule Making Authority (CBDT) https://www.taxtmi.com/article/detailed?id=12748 Rule 3(7)(i) treats the interest concession on employer provided interest-free or concessional loans as a taxable perquisite, valued by applying the State Bank of India lending rate for similar loans to the maximum outstanding monthly balance and reducing that sum by interest actually paid. Exemptions apply to petty loans and specified medical-treatment loans (with insurance reimbursement limits). The loan principal is not a perquisite; the rule operationalizes Section 17(2)(viii)'s fringe benefit concept and provides a uniform administrative formula. en-us Fri, 28 Jun 2024 17:33:01 +0530 Fri, 28 Jun 2024 17:33:01 +0530 TaxTMI RSS Generator Validity of subordinate provision like I.T. Rules: The universal tests pragmatic, fair and just satisfied therefore Rule for valuation of perquisites by way of interest free or concessional loan has been held valid and intra virse the Constitution and Income Tax Act and within powers of Rule Making Authority (CBDT) https://www.taxtmi.com/article/detailed?id=12748 Rule 3(7)(i) treats the interest concession on employer provided interest-free or concessional loans as a taxable perquisite, valued by applying the State Bank of India lending rate for similar loans to the maximum outstanding monthly balance and reducing that sum by interest actually paid. Exemptions apply to petty loans and specified medical-treatment loans (with insurance reimbursement limits). The loan principal is not a perquisite; the rule operationalizes Section 17(2)(viii)'s fringe benefit concept and provides a uniform administrative formula. Articles Other Topics Fri, 28 Jun 2024 17:33:01 +0530 https://www.taxtmi.com/article/detailed?id=12748