Intt on Loan taken by partner-Deductability in firm busines
This query is : Resolved
09 December 2008
If a partner takes a loan against property which is in his name and uses the funds for firms business. Is the interest of such loan deductible in the hands of the firm.
09 December 2008
In my opinion , the same is deductible eventhough the loan has been taken in partner's name as the funds has been used by firm for its business subject to satifaction of tax authorities in this regard
09 December 2008
Since the loan is been taken to be utilised by the firm the interest thereof is deductable. The loan was provided against a security is a separate issue. In all cases you will find that loans are provided against personal guarantee of the partners.. which is also a form of security though the partners are separate from the firm and not the direct assets of the firm in real accounting sense.
09 December 2008
Partnership firm can always acuire assets of incur liablities in the name of partner,if so agreed by partners
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- FEMA regulation Act. for inward remitance
- Rental income of jointly held property
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
