Interest on loan given not received
This query is : Resolved
24 March 2012
I have given interest free unsecured loan of Rs. 50.00 lacs but i have paid interest on unsecured loans which have taken.
I want to know whether any problem will arise in future due to above transaction at the time of scrutiny of income tax departmen. if yes
what i have to do
CA Kusum Sorathia
I want to know whether any problem will arise in future due to above transaction at the time of scrutiny of income tax departmen. if yes
what i have to do
CA Kusum Sorathia
28 March 2012
There should not be any problem if the interest paid is at par with the rates charged by financial lenders.
Rupesh Jain
(Expert)
22 May 2014
if you are claim intt as exp. then this exp will disallowed due to you are not earn any income agast this intt.
CA Kumar Mukesh
(Expert)
21 December 2014
Dear Kosum, interest on such loans shall be allowed only if it is used for the purpose of business profession.
In your case if advances given from that loans other than business purposes interest on such loans can be disallowed under section 37
In your case if advances given from that loans other than business purposes interest on such loans can be disallowed under section 37
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