Case Law Details
The High Court of Delhi has ruled that notional interest on security deposit provided against a lease agreement cannot be taxed as perquisite in the hands of the employee.
Facts
Mr. Vijay Singh (“respondent”) was the Managing Director of M/s. Sony Music Entertainment (India) Ltd (“the Company”) during the tax year 2000- 01 relevant to Income-tax assessment year 2001- 02. The Company entered into a lease agreement with B.P. (India) Ltd for leasing a property owned by them and paid security deposit of INR 31 million besides providing additional guarantee. This property was given to the r...
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I have got House Security Deposit loan Rs100000/- in Nov, 2015 from my company and given to landlord. This was interest free loan. Company has added Rs 5395.87/- as an interest in my Form 16 for FY 2015-2016 that is taxable. Is it feasible as I am returning Rs 8333/- per month from salary from Nov 2015 onwards?