In accordance with sub-section 14(a) of section 13 of the income tax ordinance 2001, Benchmark rate means
(i) for the tax year commencing on the first day of July, 2002, a rate of five per cent per annum; and
(ii) for the tax years next following the tax year referred to in sub-clause (i), the rate for each successive year taken at one per cent above the rate applicable for the immediately preceding tax year, but not exceeding 3[ten per cent per annum] in respect of any tax year
Benchmark rate is the rate of interest levied under income tax ordinance 2001 for the treatment of loan. The said loan has been taken to the employee by the employer and will be chargeable in various circumstances under the head “income from salary”.