FBT & INCOME TAX

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Varsha Jain (Querist)

24 August 2007 impact of FBT on interest on car loan. does it fall within the scope of "Repair & Maintanence"

mr.X, a partnership firm engaged in the business of rice mill. during the financial year it rented out its mill (owing to loss).whether the rent income will be Income from other source oR Income from PGBP"

Raj

Raj (Expert)

24 August 2007 yes interest in loan for motor car will fall under repair maintenance & running exp. & fall under FBT.

Raj

Raj (Expert)

24 August 2007 His core business is rice , clearly rent will come under other income in my opinion.

madhusudan

madhusudan (Expert)

25 August 2007 Mr Raj is incorrect in stating that the interest amount shall come under the FBT provisions. A close reading of sec 115WB(2)(H) would suggest that the interest due or paid on car loan is not liable to FBT.

I am totally not sure about the answer to ur second question but, irrespective of the different heads its taxability remains the same and hence there is no loss to the revenus and there would be no objection to anybody.

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