What is the correct treatment for loading income due to availing concessional rate house building loan by emp.?

I have availed HBL, during 1997,provided by employer @ 9.25% which was arranged by them from HDFC at 18.5%. Now the employer is considering the difference of interest paid by them to HDFC as my income under form 12B. What is the correct treatment as per law. Can I be penalised due to my employer's borrowing at a higher rate when lower rate loans are available in the market?What is the correct treatment for loading income due to availing concessional rate house building loan by emp.?
Your employer has done nothing wrong by showing the difference of interest as your prequisite under income tax law. And u need not to worry about u being penalised by IT dept. for higher rate considering the rate were higher then or other bank had so many formality to fulfill %26amp; bla bla bla . My suggestion for u is that u can repay the loan by taking loan from other bank by doing that u can avail the banefit of section 24 which is 1,50,000 now in your case it is 30,000 yet.