Interest on borrowed capital
This query is : Resolved
11 July 2014
A Ltd company incorporated in 2008 with the main objective of Construction bussiness.
compant borrewed fund for its business purpose but company did not start its business till 2014, companny lend this fund to its sister concern ie private company. company charged interest on that fund from sister concern and also claim interest cost in its accounts.
whether interest received on lendind fund is pre operative nature and it is allowed in IT ACT. Or
whether it is taxable under the head of Other sources
kindly mention any case law
compant borrewed fund for its business purpose but company did not start its business till 2014, companny lend this fund to its sister concern ie private company. company charged interest on that fund from sister concern and also claim interest cost in its accounts.
whether interest received on lendind fund is pre operative nature and it is allowed in IT ACT. Or
whether it is taxable under the head of Other sources
kindly mention any case law
11 July 2014
it is not the main business of lending money..so its income from other soureces.
14 July 2014
pls refer sec 28 for more details and no need for any case law on this subject matter.
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
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Movement of goods by packers and movers - type of sale - Reg.
- Missed uploading GST Invoice
- ARCA LOGIN
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- TDS Return Statement Status
- Closer of business and itc of capital goods
- Appointment of Auditor By Form ADT-1
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
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
