22 July 2015
I purchased an asset on behalf of a friend and every month EMI is deducted from my account on such purchase, simultaneously i receive amount equal to the EMI amt from my friend every month in my bank a/c
Now whether such amt received from my friend every month shall be taxable in any sorts? If Yes, can i claim any deduction of the EMI by showing that every month EMI is deducted from my account corresponding to such receipt?
23 July 2015
You simply need to do is that create a accounting head in the name of your friend and post all the debit credit entries in it. You have not gained anything in this transaction so there is no income of any sort under income tax act. It is mere reimbursement of expense incuured on his behalf.
CAclubindia
