194A INTEREST IS TREATED AS A PRESUMPTIVE BUSINESS INCOME?
This query is : Resolved
Suresh S. Tejwani
(Querist)
21 November 2024
If TDS is deducted under section 194A. Mr. X has filed his return of income under presumptive basis i.e. Income u/s. 44AD by showing Income of 194A as presumptive. is it correct? whether Income u/s. 194A is treated as a business income? if yes, then is it any certificate/license is required?
Nikhil Kaushik
(Expert)
21 November 2024
194A is for interest income. Unless you are into business of lending money, which is a regulated activity, you dont get to cover it as business income. Also, please note that presumptive income is computed on gross receipts. recently an ITAT bench has held that all the receipts in the business account shall be included in the gross receipts. This will include principal repayments too if you go about including this activity as business activity!
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