How To Calculate Perquisite Value In Concessional Loan / Interest Free Loan

As per Income Tax rules if Interest free/concessional loan is provided by the employer to employee , it will be treated as perquisite to the employee and it as per Income tax rules , it valuation should be done and added to the income of the the employee.For interest free/concessional loan valuation interest rate of State Bank of India as applicable on first day of the financial year is to be considered. For Financial year 2012-13 , interest rate as applicable on 01.04.2012 is required ,which has been provided in the table below.

State Bank of India: Interest Rates on 1st April, 2012 ,For the purpose of computing perquisite valuation

Interest rates as on 1st April, 2012 on various loans in Personal Segment advances are as under –

Calculation of Perquisite Value In Concessional Loan /Interest Free Loan

Home Loan Scheme
Loan Amount	Linkage with Base Rate over the tenor of the loan		Effective Rate
Upto Rs. 30.00 lacs	0.75% above Base Rate		10.75% p.a.*
Above Rs. 30.00 lacs and upto Rs. 75.00 lacs	1.00% above Base Rate		11.00% p.a.*
Above Rs. 75.00 lacs	1.25% above Base Rate		11.25% p.a.*
No fixed rate option in any limit bracket.
* A concession of 0.25% in card interest rate over the tenor of Home Loan is available under ongoing special Home Loan campaign upto 30.09.2012.
SBI Car Loan Scheme
For all tenures		For Term Loan:
		1.25% above Base Rate, i.e. 11.25% p.a.
		For Overdraft:
		1.75% above Base Rate, i.e. 11.75% p.a.
NRI Car Loan
		1.25% above Base Rate i.e. 11.25% p.a.
For all tenures
Two- Wheeler Loan
Up to 3 years		8.25% above Base Rate i.e. 18.25% p.a.
Used Vehicles
Up to 3 years		7.25% above Base Rate i.e. 17.25% p.a.
Above 3 yrs		7.50% above Base Rate i.e. 17.50% p.a.
Certified Pre-owned Car Loan scheme
Up to 3 years		6.00% above Base Rate i.e. 16.00% p.a.
Above 3 yrs		6.50% above Base Rate i.e. 16.50% p.a.
SBI Student Loan Scheme
For loans upto Rs.4 lacs		3.50% above Base Rate, currently 13.50% p.a.
Above Rs.4 lacs and upto Rs.7.50 lacs		3.25% above Base Rate, currently 13.25% p.a.
Above Rs.7.50 lacs		2.00% above Base Rate, currently 12.00% p.a.
Xpress Credit
Type		Facility		Rate of Interest
Demand Loan		Check-off from Employer		5.00% above Base Rate Floating, currently 15.00% p.a.
SBI Saral Personal Loan
Demand Loan		Check-off from Employer		8.50% above Base Rate Floating, currently 18.50% p.a.
Loans against NSCs/KVPs/RBI Relief Bonds/Surrender Value of SBI Life /LIC/SBI Magnums, etc.
Upto 3 years		4.50% above Base Rate, currently 14.50% p.a.
More than 3 years and below 6 years		4.50% above Base Rate, currently 14.50% p.a.
Loan against Gold Ornaments
Upto Rs. 1,00,000/-		4.25% above Base Rate Floating, currently 14.25% p.a.
Above Rs. 1,00,000/-		4.75% above Base Rate Floating, currently 14.75% p.a.

Looking forward to your comments and feedback

Siddharth Desai
(BLOG: http://desaisiddharth.blogspot.in/ )
(Email: desaisiddharth09@gmail.com)