Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Interest free loan
08-15-2010, 06:10 PM
Post: #1
Interest free loan
What will be treatment of Interest Free loanin case the employer has charged more than the Benchmark rate e.g. benchmark rate is 11% but employer has charged 12% and the amount of loan is 900,000.
Visit this user's website Find all posts by this user
Quote this message in a reply
08-16-2010, 02:50 AM
Post: #2
 
dada if the employer has charged 12% than how come you are calling it interest free???
furthermore income tax ordinance 2001 section 13(7) and 13(8)
caters the situation when loan is interest free or interest is lower than the bench mark rate however in the situation you presented neighther of two things are present.

and as no deductions are allowed under head salary thus employee wont be able to claim the benefit of interest paid as expense..neighter we would treart is as income of employee

furthermore the tax section<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by dashing_dear</i>
<br />What will be treatment of Interest Free loanin case the employer has charged more than the Benchmark rate e.g. benchmark rate is 11% but employer has charged 12% and the amount of loan is 900,000.

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Visit this user's website Find all posts by this user
Quote this message in a reply
08-16-2010, 08:17 PM
Post: #3
 
hahah mamu mujhe pata tha yahi sawal uthay k interest free kese hai? but same problem hamare paper main aai thi is liye poocha tha )
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by imdad1</i>
<br />dada if the employer has charged 12% than how come you are calling it interest free???
furthermore income tax ordinance 2001 section 13(7) and 13(8)
caters the situation when loan is interest free or interest is lower than the bench mark rate however in the situation you presented neighther of two things are present.

and as no deductions are allowed under head salary thus employee wont be able to claim the benefit of interest paid as expense..neighter we would treart is as income of employee

furthermore the tax section<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by dashing_dear</i>
<br />What will be treatment of Interest Free loanin case the employer has charged more than the Benchmark rate e.g. benchmark rate is 11% but employer has charged 12% and the amount of loan is 900,000.

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Visit this user's website Find all posts by this user
Quote this message in a reply
08-16-2010, 09:27 PM
Post: #4
 
I think u have misunderstood the question

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by dashing_dear</i>
<br />hahah mamu mujhe pata tha yahi sawal uthay k interest free kese hai? but same problem hamare paper main aai thi is liye poocha tha )
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by imdad1</i>
<br />dada if the employer has charged 12% than how come you are calling it interest free???
furthermore income tax ordinance 2001 section 13(7) and 13(8)
caters the situation when loan is interest free or interest is lower than the bench mark rate however in the situation you presented neighther of two things are present.

and as no deductions are allowed under head salary thus employee wont be able to claim the benefit of interest paid as expense..neighter we would treart is as income of employee

furthermore the tax section<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by dashing_dear</i>
<br />What will be treatment of Interest Free loanin case the employer has charged more than the Benchmark rate e.g. benchmark rate is 11% but employer has charged 12% and the amount of loan is 900,000.

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Visit this user's website Find all posts by this user
Quote this message in a reply
08-17-2010, 02:14 PM
Post: #5
 
no..this may b the way to confuse the students d...the right answer is really that..it is not a intrest free loan D
Visit this user's website Find all posts by this user
Quote this message in a reply
08-17-2010, 07:56 PM
Post: #6
 
Ji Bilkul,
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)