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Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2012 PD is my client and he is having rental income and he
also recieves interest on moneys lent ,mostly to farmers
and to those who are not assessees by cash mode and
receives back by cash.He did not maintain any accounts.

Please clarify me the head underwhich he has to declare
his interest income, income from Other sources or
under business head thereby he should not face troubles
on scrutiny asst if selected.

if business, can he declare 8% or more on gross interest
received u/s 44AD ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 January 2012 Interest Income has to be shown under the head IFOS.
.
If PD has taken money lending license, he can show the money lending activity as his business.
.
He can give loans to farmers in cash upto Rs 19999/ only- as Section 269SS prohibits cash loan of Rs 20000 or more.
.
He has to maintain records for Interest Income earned.
.
He can not show his Income U/s 44AD in the present circumstances.

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