Interest not paid
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 May 2012
hello guys
company has not paid interest on loan taken from bank, so can company claim as expenses or not, if not then under which section under i.t. act?
if bank treated this loan as NPA then what should company treated this liability in its book(accural basis)?
company has not paid interest on loan taken from bank, so can company claim as expenses or not, if not then under which section under i.t. act?
if bank treated this loan as NPA then what should company treated this liability in its book(accural basis)?
21 May 2012
If interest is not paid before due date of filing the income tax return u/s 139(1), it can't be claimed as an expenditure by virtue of the restrictions as in section 43B of the Income tax Act,1961.
Company has to necessarily follow "accrual concept" of accounting hence interest has to be recognized in books of the company though lender treated the loan as NPA.
Company has to necessarily follow "accrual concept" of accounting hence interest has to be recognized in books of the company though lender treated the loan as NPA.
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 July 2012
thanks ......
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