WebLoans. Companies may extend low-cost or no-cost loans to employees. In certain cases, the loan is really disguised compensation. [Tussaud's Wax Museums, Inc. v. Commissioner, T.C. Memo 1966-211 (T.C. 1966).] Factors that indicate the existence of a bona fide loan include: • the existence of a promissory note, Webb) Club subscriptions paid by the company for employees' official or business use (e.g. to entertain company's clients) 9. Insurance premium of group medical insurance. The …

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WebSuch a benefit is considered under the head ‘ Salary ’ for tax purposes. Similarly, an interest-free or concessional loan provided by an employer is taxable as a ‘perquisite’ for an … WebMay 3, 2024 · Interest free/concessional rates loans to employees by the employer is a prerequisite u/s 17 (2) of Income-tax act. Hence it is taxable in the hands of employees. … things we don\u0027t know about

Understanding the Tax Treatment - IRAS

WebWhere employees are granted a loan to fund their equity investment (i.e., the employee buys the shares at market value with the loan), the tax payable depends on the amount of interest accruing on that loan. If the interest rate is equal to or above HMRC’s official rate (currently 2.5%), no tax will be payable on the loan. Web2 days ago · Some borrowers may be entitled to a tax deduction for student loan interest paid during the year. Taking the tax deduction can reduce taxable income, resulting in a potentially lower tax burden ... WebThe entry will debit Loan to Employee for $5,000 and will credit Cash for $5,000. Under the accrual method of accounting, at each balance sheet date the company should record any accrued interest by debiting Interest Receivable and crediting Interest Income. When the employee makes a payment, the company will debit Cash and will credit Interest ... things we do in the shadows show