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Interest on unsecured loan

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This query is : Resolved

saket kumar rastogi (Querist)

03 May 2018 Sir
we had taken unsecured Loan for last 3-4 years and in this financial year 2017-18 we have paid loan
amount in the mid of Financial year , but at that time we have not give interest ,which was due ,
pl. let me know that interest for that period can be paid /credited in month of march 2018 ,and TDS on
interest can be deducted. if there is any prosecution as per income tax rule , if paid at the closing of
financial year.
Thanks
Saket kumar Rastogi

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

03 May 2018 Assuming that interest remained payable from 01.04.2017 to till the date of payment say 31.08.2017. Interest for this finacial year is neither paid nor credited in the books of accounts at the time of repayment of the credit balance standing in the account of the creditor. In my view, there is no legal hurdle if you credit interest on 31st March and pay TDS U/s 194A.

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