TaxTMI 
TaxTMI 
Home Loan interest Perquisites
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....ome Loan interest Perquisites<br> Query (Issue) Started By: - LAKSHMI NARAYANAN TR Dated:- 17-7-2014 Last Reply Date:- 24-7-2014 Income Tax<br>Got 1 Reply<br>Income Tax<br>Dear All, My client works for a bank, availed home loan. Paying Interest and Principal through salary deductions. Being a bank employees get the benefit of interest at lower rate. Difference in interest benefit is included as ....
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....perquisite value and added for computation of Total Income. Can the interest amount calculated as perquisite and included in computing total Income can be claimed as deduction U/s 24 ? Kindly clarify. Pl give if you have any citation to this effect on this type of subject. Let me illustrate by an example. 1. Interest paid on Home Loan - ₹ 50000. 2. Perquisite value of Interest on Home Lo....
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....an - ₹ 35000. Can we claim interest on self occupied House Property ₹ 85000 or ₹ 50000 only ? Regards T R Lakshmi Narayanan Chennai . Mobile NO. 9962088881 Reply By SANJAY DAVE: The Reply: While your query sounds very logical, I am afraid it will not be eligible for the benefit mentioned by you for following reason: What is allowable under section 24(b) is ".......amo....
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....unt of interest payable on such capital." To my mind what is taxed as perquisite u/s 17(2)(iii)(c) can not be brought within the meaning of the above words. Further the 3rd proviso requires assesses to furnish a certificate from person to whom interest is payable and I am sure no bank will give this certificate since it has not received the amount of perquisite value as interest. In common p....
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....arlance word perquisite means -'a thing regarded as a special right or privilege enjoyed as a result of one's position'. Had there been any such intention under law the same would have been incorporated u/s 24 or u/s 17(2)(iii)(c) about such eligibility.<br> Discussion Forum - Knowledge Sharing ....