Interest on unsecured loans

Save Share

This query is : Resolved

anusha (Querist)
Follow

10 March 2015 Dear Sir,

I am working in a real estate organisation(P.firm). We have taken some unsecured loans. My Question is

1)Is it sufficient, if we take a certificate as they provided the loan as interest free loan or
Is it compulsory to pay interest on that unsecured loan and deduct TDS?

Looking froward for your valuble replies

Thanks in Advance

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

10 March 2015 Though you can take certificate of no interest loan from them it will be hard to prove if scrutiny comes that you have availed interest free unsecured loan especially if your firm has itself given loan to some persons and is charging interest for that. Moreover a partnership firm is always liable to deduct TDS on interest paid by it whether its accounts are audited or not u/s 44AB if interest paid is in excess of Rs. 5000.

anusha

anusha (Querist)
Follow

10 March 2015 Thank You Sir for the reply

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now