There will be an increase from 12.5% to 13.5% in the specified interest rate to be used in calculating the taxable benefit arising on preferential loans.
Where the preferential loan is?a home loan, the specified rate will be decreased from 5% to 4%.
Its important to note in this time of low interest rates that a loan is not a preferential loan if the rate of interest is not less than the interest rate charged on similar loans to other individuals (Individuals who are not employee’s or their spouses)
