SANDEEP KUMAR SRIVASTAVA (EXECUTIVE - HR & ADMIN.) 30 March 2012

Loan from company

Sir,

I have taken Rs 3,00,000 interest free loan from my Company in the month of May - 2011 and by till date i haven't any paid installements during this year.

I have doubt, wheather the loan amount will be included in my Income for Tax purpose.

Regards,

SANDEEP KUMAR SRIVASTAVA

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2 Replies

Harsh Girish Patel (Final CA Student) 18 April 2012

Dear Sandeep Sir,

Loan of Rs 300000 is in the nature of advance against salary & not advance of salary.

later is taxable as a salary in the year in which you receives the same however the advance against salary is NOT TAXABLE as salary.

So, in your case the loan amount will not be considered as an income.(based on the info given by you)

Regards

Harsh Patel

Vineet (Director) 18 April 2012

The loan from employer is not taxable but perquisite value of interest will be included in your taxable slary.

If you do not refund this loan within a reasonable time as per terms of advance, it may be treated as profit in lieu of salary and taxed in your hand.