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Interest on loan taken

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Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2015 interest on loan taken for business purpose from bank or financial institutions whether interest must pay before filing of ITR. for not Levy section 43B section as per income tax.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 April 2015 Yes, interest will be allowed as an expenditure only when it is paid up to the due date of return filing or before filing the return, which ever is earlier.
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Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2015 but if loan taken from NON financial institutions whether section 43 B apply.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 April 2015 Any interest payable to FI and Scheduled Banks as prescribed U/s 43b(d)&(e) can be disallowed.
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Except these, if interest is payable to other parties , Section 43B is not applicable and as such interest is allowable.

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