Fringe Benefit Tax
For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 7%. This rate will be applicable for three months i.e. April, May and June 2020.
Deemed Interest Rate
For purposes of section 16(5), the prescribed rate of interest is 7%. This is applicable for the months of April, May and June 2020.
Withholding tax rate of 15% on the deemed interest shall be deducted and paid to the Commissioner by 20th of the month following the month of computation.