01 June 2011
unsecured loan taken on 28.01.2011 670000 on the same day repaid 47034, same day interest credited 52260 & TDS debited 5226. the question is for sec. 269ss whether interest to be considered as loan accepted and loan taken be as 722260 then what will be max. bal. o/s. For 269t will tds be considered as repayment and repayment be shown as 52260
01 June 2011
Here interest is not converted into loan,though credited in the loan account,since interest alone is paid off. Therefore,interest need not be considered as loan. In view of the above maximum balance outstanding is 6,70,000/- Repayment of loan will be nil. The above observation is derived from ICAI guidelines.
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