43B - Interest on loan from scheduled bank

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venu (Querist)
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28 June 2010 Dear All,

In case of Over Draft Account with a scheduled bank, how do we ascertain whether the interest charged by the bank has been paid or not?(since there will be deposit and withdrawal and we can not really attribute the deposit to the payment of interest)

Thank you

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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28 June 2010 In case of Overdraft a/c , as soon as when bank has charged interest in account, then they are debiting your account i.e it will be shown withdrawl side. ie. overdraft use is increased. i.e they are recovered interest from your account.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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28 June 2010 Section 43B may not be applicable to OD facility availed on a regular basis.

More opinion solicited.

DR GAURAV GUPTA FCA, FCS, LL.B

DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
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28 June 2010 43b is attracted

venu

venu (Querist)
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29 June 2010 43B is attracted even for OD and cash credit account. but the question is " can the debit to our account can be treated as payment?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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29 June 2010 yES, DEBIT TO OUR ACCOUNT WILL BE TREATED AS PAYMENT.

venu

venu (Querist)
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29 June 2010 When our bank A/c account has positive balance then, debit can be treated as payment, but when OD a/c has negetive balance, then can we treat debit of interest charges to our od a/c as "payment"? Will not it be an addition to already existing loan. hence expanation 3c to 43B attracted?

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