Disallowance of interest expenditure u/s 40a(20(b)


This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
02 March 2012 disallowance of interest expenditure u/s 40A(20(b)by comparision of relatives and others interest rate with bank int rate.
Relatives and others int rate - 18%
Bank int rate - 12%

in this case int rate to relatives and outsiders is same but the AO disallow based on Bank int rate. please help me in this regard

02 March 2012 yes if ao has find that the rate of interest to relative is more & loan amount is high than dissallowed. if paid to outsider is on nominal loan.

anurag (Expert)
02 March 2012 AO has the power to disallow.

Profile Image

Guest

Profile Image

Guest (Expert)
02 March 2012 AO is empowered to make such dissallowance.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
03 March 2012 how can he disallow? banks may provide loan with security but outsiders and relatives provide without security. the loan amount taken from outsiders and relatives are almost same or nearby.

03 March 2012 if AO found genioun transaction than he can not dissallowed.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
03 March 2012 he know all the facts that am written above but he says i want to disallow

04 March 2012 than file apeal aginst notice of dissal.


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



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details