Interest- business income or income from other source
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 November 2011
my client is lending money for interest.He did not have money lending licence.
1.Is licence necessary to consider interest income as business income?
2.He wants to file u/s 44AD at greater than 8% on total interest received as he has not maintained accounts.
can he do so? please clarify.
1.Is licence necessary to consider interest income as business income?
2.He wants to file u/s 44AD at greater than 8% on total interest received as he has not maintained accounts.
can he do so? please clarify.
28 November 2011
1. licence is not neccesary because many people doing business of lending money on interest in today's scenerio.
2. it will treated as business income of lender..if he has only lending money his source of income..he can file return on the basis of provisions contained sec 44AD.
2. it will treated as business income of lender..if he has only lending money his source of income..he can file return on the basis of provisions contained sec 44AD.
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29 November 2011
1.Money lending without licence is an 'illegal business'. However, the taint of illegality can't detract from the profit being taken into account for computation of profit under section 28 of the I.T.Act,1961.
Citation:- Harinder Singh Vs.ITO (1987) 166 ITR 763 (All).
Citation:- Harinder Singh Vs.ITO (1987) 166 ITR 763 (All).
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