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interest on loans and advances

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11 July 2011 A company(non banking financing company) gives a loan of 75 lac to another company(resort). They charge interest @ 13% P.a.My question is
1)under which head(income tax act 1961) interest will be taxable?
2)how much TDS should be deducted?



11 July 2011 Interest on secured or unsecured loan which ever is applicable, under that head expenditure to be booked.

Tds to be deducted at 10% on interest is applicable u/s 194A.



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