AJEET KUMAR JHA (ARTICLE) (37 Points)
05 August 2014If a Proprietorship firm gives/ receives loan during the year to his relatives and the loan is received/ repaid during the same financial year and outstanding amount as on 31st Mar..so is mandatory to provide interest on that repaid amount?Will any of the provisions under Income tax act will be attracted for fine?
Mihir
(Wealth Manager)
(5293 Points)
Replied 05 August 2014
No, but better to keep a document to record this transaction.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 05 August 2014
D K BAYYAREDDY
(CHARTERED ACCOUNTANT)
(52 Points)
Replied 09 December 2014
Provisions of 269SS and 269T has to kept in mind and check if it is not borrowed money given to relatives. In such cases, Interest shall be disallowed.
CAclubindia
