Liability of income tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 January 2013
I HAVE TAKEN LOAN FROM MY FAMILY MEMBER RS.15 LACK
INVESTED THAT AMOUNT IN OUR UN LISTED PVT.LTD. CO., BECOME A SHARE HOLDER,THERE IS NO INCOME FROM THAT COMPANY
I HAVE ALSO OTHER INCOME, I HAVE GIVEN INTEREST TO MY FAMILY MEMBER FOR UN SECURED LOAN TAKEN, CAN I CLAIM HIS INTEREST EXP. IN MY INCOME TAX RETURN
INVESTED THAT AMOUNT IN OUR UN LISTED PVT.LTD. CO., BECOME A SHARE HOLDER,THERE IS NO INCOME FROM THAT COMPANY
I HAVE ALSO OTHER INCOME, I HAVE GIVEN INTEREST TO MY FAMILY MEMBER FOR UN SECURED LOAN TAKEN, CAN I CLAIM HIS INTEREST EXP. IN MY INCOME TAX RETURN
CA PARAS BAFNA
(Expert)
06 January 2013
WHAT IS THE SOURCE OR HEAD OF OTHER INCOME?
.
THE INTEREST IS DEDUCTIBLE ONLY WHEN THE EXPENDITURE HAS BEEN INCURRED FOR THE PURPOSE OF EARNING INTEREST INCOME. HERE THIS IS NOT THE CASE. SIMPLY BY INVESTING IN PVT LTD CO SHARES, YOU CAN'T CLAIM THE INTEREST. HOWEVER, IF YOU ARE HAVING INTEREST INCOME TO THAT EXTENT YOU CAN CLAIM THE EXPENDITURE.
.
The following link may help you upto some extent-
https://www.kpmg.com/IN/en/Services/Tax/FlashNews/KPMG-Flash-News-Ultramine-Pigments-Ltd.pdf
.
THE INTEREST IS DEDUCTIBLE ONLY WHEN THE EXPENDITURE HAS BEEN INCURRED FOR THE PURPOSE OF EARNING INTEREST INCOME. HERE THIS IS NOT THE CASE. SIMPLY BY INVESTING IN PVT LTD CO SHARES, YOU CAN'T CLAIM THE INTEREST. HOWEVER, IF YOU ARE HAVING INTEREST INCOME TO THAT EXTENT YOU CAN CLAIM THE EXPENDITURE.
.
The following link may help you upto some extent-
https://www.kpmg.com/IN/en/Services/Tax/FlashNews/KPMG-Flash-News-Ultramine-Pigments-Ltd.pdf
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