Interest on loan from partner


This query is : Open 

11 August 2014 Loan from partner - Rs.590000/-
Interest paid - Rs.100000/-
As per deed maximum rate is 18%
how much will be allowed as per income tax?

11 August 2014 only 12% is allowed under the act

11 August 2014 this is interest on capital but i want to know for interest n loan

11 August 2014 there is no provision for int on loan under income tax act

11 August 2014 deduction of Rs.100000/- is admissible

11 August 2014 yes i checked singhania its allowed to take deduction

11 August 2014 but tds is not deducted on it then also it will allowed.

11 August 2014 no tds is applicable in this case as partners are part onwers so they giving loan to themselveles indirectly so no tds is applicable

11 August 2014 interest @ 12% is allowed
it is only interest on capital or
interest on capital as well as interest on loan both

11 August 2014 12% is not applicable on loan but only on capital

11 August 2014 any case law related to this?

11 August 2014 any case law related to this?

11 August 2014 any case law related to this?

11 August 2014 refer explanation 1 to sec 40(b) its clearly written, so need to refer case law

11 August 2014 any case law related to this?

11 August 2014 can you please send me any case law because my client is not agree?

11 August 2014 i didnt find any case law

11 August 2014 Unsecured loan from relative of partner and interest paid around Rs.70000/- tds is not deducted from it. whether it will be allowed as deduction.

11 August 2014 then section 40A (2) will be hit and may be disallowed

11 August 2014 please reply this is another query

11 August 2014 how can i allow this. any possibilities if there is no TAN no. with client

11 August 2014 please reply this query ?

11 August 2014 no u need to pay not above or below market rates to escape this

11 August 2014 interest rate is around 8%

11 August 2014 how can i claim this interest

11 August 2014 check wat other firms in similar industry follows

12 August 2014 if you are taking loans from bank then intt. given to relative is less then the bank rate. other wise excess rate will be disallowed.

12 August 2014 interest rate is around 10%

12 August 2014 and no tds is deducted so whether this will be allowed for deduction or not


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