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.
Message likes :
1 times
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).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
