Interest on unsecured loans

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Dhananjay Singh

Hmr Babu

Mikilesh Shah

CA Jyoti Singh

Phani

Subscribe Now

Interest on unsecured loans

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Accountant

Article Assistant

GST CONSULTANCY

Manager- Finance and Compliance

CA Final