Loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2018 My file has gone for audit for ay 2018-19 and i am the proprietor of the firm.I have taken loan from a individual and given to some other person on interest.I have taken lian in my name.My auditor told me that i cannot give loan by taking loan.I have to pay penalty for violation of income tax loan laws.
What penalty will I have to pay now, Is it violation of income tax rules that loan cant be given by taking loan.
.

Nikhil Kaushik online

Nikhil Kaushik online

(Expert)
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12 August 2018 don't know about any income-tax violation. specially if the loan was taken and given through normal banking channels.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2018 But my auditor say there are income tax rules that loan cant be given by taking loan.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2018 But my auditor say there are income tax rules that loan cant be given by taking loan.

Nikhil Kaushik online

Nikhil Kaushik online

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12 August 2018 always ask the CA to give you reference to the exact rule. that sounds fair. doesn't it?

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2018 Yes you are right sir. But the chartered accountant who is doing audit work confirms that loan cant be given by taking loan.

Nikhil Kaushik online

Nikhil Kaushik online

(Expert)
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12 August 2018 as an auditee you have the right to ask chartered accountant to explain his position in writing along with required backing of law. As I said earlier if the loan is not in cash, there should not be any issue.

Else, change the CA

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2018 I have taken.loan by rtgs and given loan by Rtgs.