Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

194A INTEREST IS TREATED AS A PRESUMPTIVE BUSINESS INCOME?

Save Share

This query is : Resolved

Suresh S. Tejwani (Querist)
Follow

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

Nikhil Kaushik (Expert)
Follow

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!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now