Tax Finance Info: Valuation of Concessional Loan Interest

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<span style="font-size: large;"><b>Example of Valuation of Concessional Loan Interest</b></span></div>
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<b>Valuation of <a href="http://www.taxfinanceinfo.com/2013/10/valuation-of-concessional-loan-interest.html" target="_blank">Concessional Loan Interest</a> Sections and Explanation.</b><br />
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<span style="font-size: large;"><span class="yiv1984705834tab"><b><span style="color: black; font-family: "Calibri","sans-serif";"></span></b></span></span></div>
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<span style="font-size: large;"><span class="yiv1984705834tab"><b><span style="color: black; font-family: "Calibri","sans-serif";">Example:</span></b></span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Details of Mr X. the employee for the Financial Year
2012-13 are as follows:</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Loan given by employee <span style="mso-tab-count: 2;">                      </span>Rs. 5,00,000</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Interest Paid <span style="mso-tab-count: 4;">                                                             </span>Nil</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">SBI Rate as on 01.04.2012<span style="mso-tab-count: 2;">                               </span>12%</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">SBI Rate as on 01.04.2013<span style="mso-tab-count: 2;">                               </span>13.5%</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Calculate the value of Interest taxable under the head
salary under the lights of rule 3(7)(i) of The Income Tax Act.</span></span></div>
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<span style="font-size: large;"><span class="yiv1984705834tab"><b><span style="color: black; font-family: "Calibri","sans-serif";">Solution:</span></b></span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Interest as per rule 3(7)(i)(Note 1)<span style="mso-tab-count: 3;">                                           </span>
Rs.60,000</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">               
</span>Less:<span style="mso-spacerun: yes;">  </span>Interest actually paid at
concessional rate/ <span style="mso-tab-count: 2;">                           </span><span style="mso-spacerun: yes;">         </span>NIL</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">                                </span>Nil
interest paid<span style="mso-tab-count: 6;">                                                                                 </span><u><span style="mso-tab-count: 1;">                </span>.</u></span></span></div>
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<span class="yiv1984705834tab"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">                  </span>Taxable Amount under the Head
Salaries<span style="mso-tab-count: 2;">                                    </span>Rs.60,000</span></b></span></div>
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<span style="font-size: large;"><span class="yiv1984705834tab"><u><span style="color: black; font-family: "Calibri","sans-serif";">Note 1:</span></u></span></span></div>
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<span class="yiv1984705834tab"><u><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="text-decoration: none;"><br /></span></span></u></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Interest
as per rule 3(7)(i) = 5,00,000 *<span style="mso-spacerun: yes;">  </span>12% =
Rs. 60,000.</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Here
the rate of Interest on the First day of previous Year is to be considered so
Rate as on 01.04.2012 i.e. 13.5% is to be ignored.</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">============================================= </span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><b>Valuation of <a href="http://www.taxfinanceinfo.com/2013/10/valuation-of-concessional-loan-interest.html" target="_blank">Concessional Loan Interest</a> Sections and Explanation.</b> </span></span></div>
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<span style="font-size: large;"><span class="yiv1984705834tab"><b><span style="color: black; font-family: "Calibri","sans-serif";">Extension of example:</span></b></span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-size: 11.0pt;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">         
</span></span></span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Interest paid by Mr. X to the employer on all the loans @ 7%</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-size: 11.0pt;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">         
</span></span></span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mr. X. has repaid Rs. 3,00,000 as on 01.09.2012</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-size: 11.0pt;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">         
</span></span></span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mr. X received a car Loan from his employer Rs. 1,50,000 as on
05.12.2012</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-size: 11.0pt;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">         
</span></span></span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">SBI Interest Rate on Car Loan as on 01.04.2012 is 11.5%</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Calculate the value of Interest taxable under the head
salary under the lights of rule 3(7)(i) of The Income Tax Act.</span></span></div>
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<span style="font-size: large;"><span class="yiv1984705834tab"><b><span style="color: black; font-family: "Calibri","sans-serif";">Solution:</span></b></span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Interest as per rule 3(7)(i)(Note 1)<span style="mso-tab-count: 3;">                                             </span> Rs. 44,750</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">               
</span>Less:<span style="mso-spacerun: yes;">  </span>Interest actually paid at
concessional rate/ <span style="mso-tab-count: 2;">                              </span><span style="mso-spacerun: yes;"> </span>Rs. 26,250</span></span></div>
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<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">                                </span>Nil
interest paid<span style="mso-tab-count: 1;">                </span> (Note 2)<span style="mso-tab-count: 1;">              </span><span style="mso-tab-count: 3;">                                 </span>
<u><span style="mso-tab-count: 1;">               </span><span style="mso-spacerun: yes;">   </span><span style="mso-spacerun: yes;">   </span>.</u></span></span></div>
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<span class="yiv1984705834tab"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">                  </span>Taxable Amount under the Head
Salaries<span style="mso-tab-count: 2;">                                     </span>Rs.18,500</span></b></span></div>
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<b><span style="font-size: large;"><span class="yiv1984705834tab"><u><span style="color: black;">Note 1:</span></u></span></span><span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"> Interest as per rule 3(7)(i) :</span></span></b></div>
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  <td style="border: 1pt solid black; padding: 0in 5.4pt; text-align: center; width: 87.9pt;" valign="top" width="117"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Months </span></span></b></div>
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<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Maximum O/s Balance</span></span></b></div>
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<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Calculation</span></span></b></div>
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<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Interest</span></span></b></div>
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<br /></div>
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<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Personal
  Loan</span></span></b></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 55.95pt;" valign="top" width="75"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Car Loan</span></span></b></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<br /></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 48.85pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<br /></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 2;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 87.9pt;" valign="top" width="117"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">April
  to August</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 57.5pt;" valign="top" width="77"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">500000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 55.95pt;" valign="top" width="75"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">-</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  500000*12%*5Months/12</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.85pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">25000</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 3;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 87.9pt;" valign="top" width="117"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">September
  (500000-200000)</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 57.5pt;" valign="top" width="77"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">200000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 55.95pt;" valign="top" width="75"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">-</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  200000*12%*1Month/12</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.85pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">2000</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 4;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 87.9pt;" valign="top" width="117"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">October
  to November</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 57.5pt;" valign="top" width="77"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">200000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 55.95pt;" valign="top" width="75"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">-</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  200000*12%*2Months/12</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.85pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">4000</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 5;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 87.9pt;" valign="top" width="117"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">December
  to March</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 57.5pt;" valign="top" width="77"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">200000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 55.95pt;" valign="top" width="75"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">150000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=[200000*12%*4Months/12]+</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">   </span>[150000*11.5%*4Months/12]=8000+5750</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.85pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">13750</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;">
  <td colspan="4" style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 388.05pt;" valign="top" width="517"><div align="right" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Total</span></b></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.85pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">44750</span></b></div>
</td>
 </tr>
</tbody></table>
</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><span style="font-size: large;"><span class="yiv1984705834tab"><u><span style="color: black;">Note 2:</span></u></span></span><span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"> Interest actually paid at concessional rate/ Nil
interest paid: Paid @ 7% on all loans</span></span></b></div>
<div class="MsoNormal">
<br /></div>
<div align="center">
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 575px;">
 <tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
  <td style="border: 1pt solid black; padding: 0in 5.4pt; text-align: center; width: 100.65pt;" valign="top" width="134"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Months </span></span></b></div>
</td>
  <td colspan="2" style="-moz-border-bottom-colors: none; -moz-border-left-colors: none; -moz-border-right-colors: none; -moz-border-top-colors: none; border-color: black black black -moz-use-text-color; border-image: none; border-style: solid solid solid none; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 1.35in;" valign="top" width="130"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Maximum O/s Balance</span></span></b></div>
</td>
  <td style="-moz-border-bottom-colors: none; -moz-border-left-colors: none; -moz-border-right-colors: none; -moz-border-top-colors: none; border-color: black black black -moz-use-text-color; border-image: none; border-style: solid solid solid none; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Calculation</span></span></b></div>
</td>
  <td style="-moz-border-bottom-colors: none; -moz-border-left-colors: none; -moz-border-right-colors: none; -moz-border-top-colors: none; border-color: black black black -moz-use-text-color; border-image: none; border-style: solid solid solid none; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 46.65pt;" valign="top" width="62"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Interest</span></span></b></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 1;">
  <td style="-moz-border-bottom-colors: none; -moz-border-left-colors: none; -moz-border-right-colors: none; -moz-border-top-colors: none; border-color: -moz-use-text-color black black; border-image: none; border-right: 1pt solid black; border-style: none solid solid; border-width: medium 1pt 1pt; padding: 0in 5.4pt; text-align: center; width: 100.65pt;" valign="top" width="134"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<br /></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 58.35pt;" valign="top" width="78"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Personal
  Loan</span></span></b></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 38.85pt;" valign="top" width="52"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Car Loan</span></span></b></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<br /></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 46.65pt;" valign="top" width="62"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<br /></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 2;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 100.65pt;" valign="top" width="134"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">April
  to August</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 58.35pt;" valign="top" width="78"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">500000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 38.85pt;" valign="top" width="52"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">-</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  500000*7%*5Months/12</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 46.65pt;" valign="top" width="62"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">14583</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 3;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 100.65pt;" valign="top" width="134"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">September
  (500000-200000)</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 58.35pt;" valign="top" width="78"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">200000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 38.85pt;" valign="top" width="52"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">-</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  200000*7%*1Month/12</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 46.65pt;" valign="top" width="62"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">  </span>1167</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 4;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 100.65pt;" valign="top" width="134"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">October
  to November</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 58.35pt;" valign="top" width="78"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">200000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 38.85pt;" valign="top" width="52"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">-</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  200000*7%*2Months/12</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 46.65pt;" valign="top" width="62"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;"> </span>2333</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 5;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 100.65pt;" valign="top" width="134"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">December
  to March</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 58.35pt;" valign="top" width="78"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">200000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 38.85pt;" valign="top" width="52"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">150000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 186.7pt;" valign="top" width="249"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=[200000*7%*4Months/12]+</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">   </span>[150000*7%*4Months/12]=4667+3500</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 46.65pt;" valign="top" width="62"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;"> </span>8167</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;">
  <td colspan="4" style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 384.55pt;" valign="top" width="513"><div align="right" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Total</span></b></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 46.65pt;" valign="top" width="62"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">26250</span></b></div>
</td>
 </tr>
</tbody></table>
</div>
<div class="MsoNormal">
<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"></span></span></div>
<br />
<div style="text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">========================================= </span></div>
<br />
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><b>Valuation of <a href="http://www.taxfinanceinfo.com/2013/10/valuation-of-concessional-loan-interest.html" target="_blank">Concessional Loan Interest</a> Sections and Explanation.</b> </span><br />
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">  </span>

<br />
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-size: large;"><b>Exceptions to Loans considered in Rule
3(7)(i):</b></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span class="yiv1984705834tab"><span style="color: black; font-size: 13.5pt;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">        
</span></span></span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">When
the employee has taken a loan from employee for medical expenses for specified
diseases as per rule 3A, then even if the employee does not pay any Interest on
such loan, It is not considered as perquisite in the hands of employees and
such interest not paid is not taxable as in the above case</span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 13.5pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"></span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span class="yiv1984705834tab"><span style="color: black; font-size: 13.5pt;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">        
</span></span></span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Specified
diseases as per Rule 3A(2) are:</span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 13.5pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"></span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">a)<span style="font: 7.0pt "Times New Roman";">     
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">cancer;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">b)<span style="font: 7.0pt "Times New Roman";">     
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">tuberculosis;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">c)<span style="font: 7.0pt "Times New Roman";">      
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">acquired immunity deficiency syndrome;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">d)<span style="font: 7.0pt "Times New Roman";">     
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">disease or ailment of the heart, blood, lymph glands, bone marrow,
respiratory system, central nervous system, urinary system, liver, gall
bladder, digestive system, endocrine glands or the skin, requiring surgical
operation;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">e)<span style="font: 7.0pt "Times New Roman";">      
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">ailment or disease of the eye, ear, nose or throat, requiring
surgical operation;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">f)<span style="font: 7.0pt "Times New Roman";">       
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">fracture in any part of the skeletal system or dislocation of
vertebrae requiring surgical operation or orthopaedic treatment;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">g)<span style="font: 7.0pt "Times New Roman";">      
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">gynaecological or obstetric ailment or disease requiring surgical
operation, caesarean operation or laperoscopic intervention;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">h)<span style="font: 7.0pt "Times New Roman";">      
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">ailment or disease of the organs mentioned at (<span style="mso-bidi-font-style: italic;">d</span>), requiring medical treatment in a
hospital for at least three continuous days;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">i)<span style="font: 7.0pt "Times New Roman";">        
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">gynaecological or obstetric ailment or disease requiring medical
treatment in a hospital for at least three continuous days;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">j)<span style="font: 7.0pt "Times New Roman";">        
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">burn injuries requiring medical treatment in a hospital for at
least three continuous days;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">k)<span style="font: 7.0pt "Times New Roman";">      
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">mental disorder - neurotic or psychotic - requiring medical
treatment in a hospital for at least three continuous days;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">l)<span style="font: 7.0pt "Times New Roman";">        
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">drug addiction requiring medical treatment in a hospital for at
least seven continuous days;</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -19.85pt;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-list: Ignore;">m)<span style="font: 7.0pt "Times New Roman";">    
</span></span></span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">anaphylectic shocks including insulin shocks, drug reactions and
other allergic manifestations requiring medical treatment in a hospital for at
least three continuous days.</span></i></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 28.35pt; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span class="yiv1984705834tab"><span style="color: black; font-size: 11.0pt;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">         
</span></span></span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">In case where, the Loan is taken by an employee for the medical
expenses and if the amount is less than Rs. 20,000, then it is exempt from tax
on Interest which is the balance of the interest at SBI Rate and the Interest
actually paid by the employee.</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span class="yiv1984705834tab"><span style="color: black; font-size: 11.0pt;"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">         
</span></span></span></span><span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">When the employee has received loan from employer for medical
treatment for specified disease as per rule 3A, and if the employee receives
any reimbursement is made by the insurance company than such amount will not be
allowed for exemption. Let us understand the same with an example:</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin: 0in 0in 0.0001pt; text-align: center;">
<span class="yiv1984705834tab"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">================================================== </span></b></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<b>Valuation of <a href="http://www.taxfinanceinfo.com/2013/10/valuation-of-concessional-loan-interest.html" target="_blank">Concessional Loan Interest</a> Sections and Explanation.</b></div>
<div class="indent1" style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin: 0in 0in 0.0001pt; text-align: justify;">
<span style="font-family: inherit;"><span style="font-size: large;"><span class="yiv1984705834tab"><b><span style="color: black;">Example:</span></b></span></span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Details of Mr X. the employee for the Financial Year
2012-13 are as follows:</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Loan given by employee for specified disease as per
Rule 3A<span style="mso-tab-count: 2;">                       </span><span style="mso-tab-count: 1;">                </span>Rs. 2,00,000</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Loan given by employee for Medical Treatment<span style="mso-tab-count: 4;">                                               </span><span style="mso-tab-count: 1;">                </span><span style="mso-spacerun: yes;">   </span>Rs. 22,000</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Interest Paid <span style="mso-tab-count: 9;">                                                                                                                             </span><span style="mso-tab-count: 1;">                </span><span style="mso-spacerun: yes;">   </span>Nil</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">SBI Rate as on 01.04.2012<span style="mso-tab-count: 8;">                                                                                                      </span><span style="mso-tab-count: 1;">                </span><span style="mso-spacerun: yes;"> 
</span>12%</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Reimbursement by Insurance Company for specified
Disease<span style="mso-tab-count: 1;"> </span>on 01.12.2012<span style="mso-tab-count: 2;">       </span><span style="mso-spacerun: yes;">   </span><span style="mso-spacerun: yes;"></span>Rs.
80,000</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Repayment of Loan by employee for Medical Treatment on
01.02.2012<span style="mso-tab-count: 2;">                  </span> <span style="mso-spacerun: yes;">  </span>Rs. 10,000</span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><span style="color: black; font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Calculate the value of Interest taxable under the head
salary under the lights of rule 3(7)(i) of The Income Tax Act.</span></span></div>
<br />
<span style="font-family: inherit;"><span style="font-size: large;"><span class="yiv1984705834tab"><b><span style="color: black;">Solution:</span></b></span></span></span>

<br />
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-indent: .5in;">
<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Interest as per rule 3(7)(i)(Note 1)<span style="mso-tab-count: 3;">                                           </span> Rs. 4,650</span></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">
<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">               
</span>Less:<span style="mso-spacerun: yes;">  </span>Interest actually paid at
concessional rate/ <span style="mso-tab-count: 2;">                              </span><span style="mso-spacerun: yes;">         </span><span style="mso-spacerun: yes;"> </span>NIL</span></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in;">
<span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">                                </span>Nil
interest paid<span style="mso-tab-count: 1;">                            </span><span style="mso-tab-count: 1;">              </span><span style="mso-tab-count: 3;">                             </span>
<u><span style="mso-tab-count: 1;">               </span><span style="mso-spacerun: yes;">     </span>.</u></span></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<span class="yiv1984705834tab"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-tab-count: 2;">                  </span>Taxable Amount under the Head
Salaries<span style="mso-tab-count: 2;">                                     </span>Rs.4,650</span></b></span></div>
<div class="indent1" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal">
<b><span style="font-size: large;"><span class="yiv1984705834tab"><u><span style="color: black;">Note 1:</span></u></span></span><span class="yiv1984705834tab"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"> Interest as per rule 3(7)(i) :</span></span></b></div>
<div class="MsoNormal">
<br /></div>
<div align="center">
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 551px;">
 <tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
  <td style="border: 1pt solid black; padding: 0in 5.4pt; text-align: center; width: 78.5pt;" valign="top" width="105"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Months </span></span></b></div>
</td>
  <td colspan="2" style="-moz-border-bottom-colors: none; -moz-border-left-colors: none; -moz-border-right-colors: none; -moz-border-top-colors: none; border-color: black black black -moz-use-text-color; border-image: none; border-style: solid solid solid none; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 117.4pt;" valign="top" width="157"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Maximum O/s Balance</span></span></b></div>
</td>
  <td style="-moz-border-bottom-colors: none; -moz-border-left-colors: none; -moz-border-right-colors: none; -moz-border-top-colors: none; border-color: black black black -moz-use-text-color; border-image: none; border-style: solid solid solid none; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 181.15pt;" valign="top" width="242"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Calculation</span></span></b></div>
</td>
  <td style="-moz-border-bottom-colors: none; -moz-border-left-colors: none; -moz-border-right-colors: none; -moz-border-top-colors: none; border-color: black black black -moz-use-text-color; border-image: none; border-style: solid solid solid none; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 36.1pt;" valign="top" width="48"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Interest</span></span></b></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 1;">
  <td style="-moz-border-bottom-colors: none; -moz-border-left-colors: none; -moz-border-right-colors: none; -moz-border-top-colors: none; border-color: -moz-use-text-color black black; border-image: none; border-right: 1pt solid black; border-style: none solid solid; border-width: medium 1pt 1pt; padding: 0in 5.4pt; text-align: center; width: 78.5pt;" valign="top" width="105"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<br /></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 52.75pt;" valign="top" width="70"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Specified
  Disease</span></span></b></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 64.65pt;" valign="top" width="86"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<b><span style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Unspecified
  Disease</span></span></b></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 181.15pt;" valign="top" width="242"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<br /></div>
</td>
  <td style="border-color: -moz-use-text-color black black -moz-use-text-color; border-style: none solid solid none; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; text-align: center; width: 36.1pt;" valign="top" width="48"><div class="MsoNormal" style="line-height: normal; margin-bottom: 0.0001pt;">
<br /></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 2;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 78.5pt;" valign="top" width="105"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">April
  to November</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 52.75pt;" valign="top" width="70"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">NIL</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 64.65pt;" valign="top" width="86"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">22000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 181.15pt;" valign="top" width="242"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  NIL + 22000*12%*8Months/12</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 36.1pt;" valign="top" width="48"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">1760</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 3;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 78.5pt;" valign="top" width="105"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">December
  to January</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 52.75pt;" valign="top" width="70"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">80000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 64.65pt;" valign="top" width="86"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">22000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 181.15pt;" valign="top" width="242"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  [80000*12%*2Months/12]+</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">   </span>[22000*12%*2Months/12]=1600+440</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 36.1pt;" valign="top" width="48"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">2040</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 4;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 78.5pt;" valign="top" width="105"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">February</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 52.75pt;" valign="top" width="70"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">80000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 64.65pt;" valign="top" width="86"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">12000</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">(22000-10000)</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 181.15pt;" valign="top" width="242"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  [80000*12%*1Month/12]+</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">   </span>[12000*12%*1Month/12]=800+120</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 36.1pt;" valign="top" width="48"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>920</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 5;">
  <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 78.5pt;" valign="top" width="105"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">March</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 52.75pt;" valign="top" width="70"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">80000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 64.65pt;" valign="top" width="86"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">12000</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 181.15pt;" valign="top" width="242"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">=
  [80000*12%*1Month/12]+</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">   </span>[12000*12%*1Month/12]=800+120</span></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 36.1pt;" valign="top" width="48"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;">  </span>920</span></div>
</td>
 </tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes;">
  <td colspan="4" style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 377.05pt;" valign="top" width="503"><div align="right" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Total</span></b></div>
</td>
  <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 36.1pt;" valign="top" width="48"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">4650</span></b></div>
</td>
 </tr>
</tbody></table>
</div>
<div class="MsoNormal">
<u><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="text-decoration: none;"></span></span></u></div>
<div class="MsoNormal">
<u><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="text-decoration: none;"><br /></span></span></u></div>
<br />
<u><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;"> </span><b><span style="font-size: large;">Explanation:</span></b></span></u>

<br />
<div class="MsoListParagraphCxSpFirst" style="margin-left: .25in; mso-add-space: auto; mso-list: l2 level1 lfo4; text-align: justify; text-indent: -.25in;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="margin-left: .25in; mso-add-space: auto; mso-list: l2 level1 lfo4; text-align: justify; text-indent: -.25in;">
<span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">         
</span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Rs 2,00,000 Loan given for specified disease
as per Rule 3A is exempted but any reimbursement by the insurance company is
not allowed as exempt so Interest on Rs. 80,000 received as reimbursement from
insurance company is taxable.</span></div>
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<span style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">-<span style="font: 7.0pt "Times New Roman";">         
</span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">It is said in the Act that if the medical Loan
taken by an employee for unspecified disease is less than Rs.20000 than
interest on such loan is not taxable as per Rule 3(7)(i).</span></div>
<br />
<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";">-         
</span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">In the above example, Maximum balance at the
end of the month February of Loan for unspecified  disease becomes Rs. 12000,
which is less than Rs.20,000, but still Interest on same is taxable because the
original Loan amount is more than Rs. 20,000 i.e. Rs. 22,000.</span>

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<b>Valuation of <a href="http://www.taxfinanceinfo.com/2013/10/valuation-of-concessional-loan-interest.html" target="_blank">Concessional Loan Interest</a> Sections and Explanation.</b></div>
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Example of Valuation of Concessional Loan Interest

Example of Valuation of Concessional Loan Interest Valuation of Concessional Loan Interest Sections and Explanation. Example...

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