Is Soft Loan taken from the employer considered as Salary and is it Taxable?

Income Tax Income from Salary
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1

Hi,

My Employer offers 1L as Soft Loan without any interest for a period of 12 Months. I fall in 30% Tax Bracket. Im planning to take a soft loan for just 1 installment. In this case will this be still attract TDS?

Or is there any exempt for Soft Loan? Please help

2

Hey @DINESH_UNDAVALLI,

Soft loans of up to ₹20,000 are exempt. However, as your loan amount is ₹1 lakh, TDS will be applicable on the interest (interest is calculated as per rates specified by SBI).

Hope this helps!