Interest expenses
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 September 2013
Dear Experts,
My client is Managing Director in Listed company and drawing salary. now he is having interest income on loan given to same company and he is also paying Interest on loan taken by him.
Client getting Interest income with net of TDS and he is not deducting TDS on Interest paid by him.
Please suggest that in which head we have to show Interest Income and can client claim interest expenses ?
Please advise.
Regards
Vijay Jain
My client is Managing Director in Listed company and drawing salary. now he is having interest income on loan given to same company and he is also paying Interest on loan taken by him.
Client getting Interest income with net of TDS and he is not deducting TDS on Interest paid by him.
Please suggest that in which head we have to show Interest Income and can client claim interest expenses ?
Please advise.
Regards
Vijay Jain
29 September 2013
Dear Vijay,
1. Normally 194A doesn't apply to individuals unless 44AB is applicable. So please check whether the director is liable for tax audit or not.
2. The interest income received can be shown in other incomes.
3. interest paid is a normal finance expense.
However, why a circular transaction is being done may raise questions in tax scrutiny.
Kindly check the applicable
1. Normally 194A doesn't apply to individuals unless 44AB is applicable. So please check whether the director is liable for tax audit or not.
2. The interest income received can be shown in other incomes.
3. interest paid is a normal finance expense.
However, why a circular transaction is being done may raise questions in tax scrutiny.
Kindly check the applicable
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
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- TAN for Partnership
- GST ON DAMAGED GOODS
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- LTCG for Assmt year 26-27
- Treatment of Pension ?annuity returns on PMVY
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
