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May 09, 2024
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SC holds bank employees' interest-free loans taxable as fringe benefits
Interest-free or concessional loans given by banks to their employees will qualify as "fringe benefits" or "amenities,” thus taxable, the Supreme Court has held, giving a major blow to the bank employees.
While upholding the income tax rule in this regard, the apex court said that such benefits enjoyed by bank employees are a “unique” to them and are in the nature of a ‘perquisite,’ hence liable to taxation.
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