Loans with perquisite

Quick Access : Payroll > Loans
Accessible to: Employees

Menu : Payroll Manager > Employee Details > Perquisite Loans tab
Accessible to : Payroll Team

If company gives loans to employees on which they charge interest which is lesser than the prevalent interest being charged by the Public Section Banks, then these loans will attract a perquisite tax. This feature is managed by creating and using "Loans with Perquisite".

Perquisite loan is created as shown below.

Like a loan the monthly instalment is adjusted against interest first and the remainder is adjusted against principal. 

Besides giving loan with perquisite there are two more scenarios in which perquisite tax can be applied on employees.

1. If the setup parameter "Deduct perquisite tax on aggregate loans above INR 20 thousand" is enabled then whenever the aggregate loan amount exceeds 20000 a perquisite tax is added on the employee. The interest rate for this loan is updated in setup for each loan type for each financial year

2. If "Medical loan - specified diseases" is taken and some amount is received as insurance claim by the employee which is updated by the employee then perquisite tax is added.

Note -

1. The perquisite tax which is calculated due to this loan is automatically added to the employee’s tax liability
   
2. Details of loan calculations can be downloaded from Reports > Payroll > Employee Reports > Loan Summary and Details
3. If you disburse loan towards the end of the month suppose on 28-Jan-2016 and updating Disbursement month as Jan-16 then interest will calculated for whole month from 1-Jan
   
4. Any unpaid loan comes as outstanding amount during the Full and Final process
   
5. Sample loan calculations are given in the attachment

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