Ms. Janhvi is provided with an interest free loan by her employer for the purchase of a house. The value of the perquisite shall be —

CS Executive · Tax Laws and Practice · PYQS · June 2016

(A) Simple interest computed at the rate charged by the Central Government to its employees on 1 st April of the previous year

(B) Simple interest computed at the rate charged by State Bank of India on 1 st April of the previous year

(C) Simple interest computed at the rate charged by National Housing Bank on 1 st April of the previous year

(D) Simple interest computed at the rate determined by the employer on 1 st April of the previous year.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax