Incometax calculation for Concessional or interest-free loans given by an employer
Updated: As per the amended finance act 2020 Interest-free loan or loan at a concessional rate of interest given by an employer to the employee (or any member of his household) is a perquisite chargeable to tax in the hands of the concerned employee under section 17(2)(viii) read with Rule 3(7)(i) of Income Tax act.…
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RBI Announces steps to maintain Orderly Market Conditions
Reserve bank of India on Monday (August 31) announced conducting of additional special open market operation involving the simultaneous purchase and sale of Government securities for an aggregate amount of Rs.20,000 crore in two tranches of Rs.10,000 crore each. The auctions would be conducted on September 10, 2020 and September 17, 2020. “The RBI remains…
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Perquisite value of motor car expenses paid/reimbursed by employer
Updated: (As per amended Finance Act, 2020). Motor Car perquisite is taxable only in case of specified employees (as defined below in note-2). Tax on perquisite value calculated on the basis of whether the motor car is used for official purpose or partly official partly personal purpose or purely for private purpose. The value of…
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Tentative new pay scale for bank employees taken final shape will be finalized in the next round of meeting
Today (Aug 28) a meeting of the working group for workmen unions of banks held on a virtual platform. Four workmen unions AIBEA-NCBE-INBEF-NOBW participated discuss about distribution of amount agreed in MOU and finalizing the new pay scales, etc. from allocated Rs.7808 crores (15%) of total amount for employees and officers together. Salient feature of…
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When is the time to classify Infrastructure and Industrial projects as NPA?
As per RBI master circular, it is a prerequisite for banks to fix a Date of Commencement of Commercial Operations (DCCO) for all project loans at the time of sanction of the loan or financial closure in the case of multiple banking or consortium arrangements. Financial closure is defined as a stage when all the…
Tax benefit for working in a hilly area, tribal area, border area, and disturbed areas
Section 10(14) of amended finance act 2020 provides tax benefits on allowances paid to salaried people working in hilly areas, tribal areas, duty on the island, duty in the border area or remote area, or any difficult/disturbed areas. Provisions of section 10(14)(ii)provide exemption towards the prescribed allowance granted to an employee to meet his personal…
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