banner_ad

Loan

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
02 February 2016 example - If individual take loan Rs.10 lac at 9% from some one and , lend to 10 lacs @ 12% to some one.

if i regularly do this for earning margin interest, if any licence require ? and income tax act relevance to this.
Profile Image

CA CMA CS Ram Pavan Kumar Melam

Profile Image

CA CMA CS Ram Pavan Kumar Melam (Expert)
03 February 2016 Refer section 45S of the RBI Act. Only banking companies and NBFCs can do lending business or accept deposits.

Regarding Income Tax, you may offer the income under the head "other sources" as you do not have licence or approval of doing lending business and claim interest u/s 57. The question of legality of business does not arise in case of Income Tax liability. However, penalties (expenditure in relation to an offence or prohibited by law) etc. cannot be claimed as per explanation 1 to section 37, in case of PGBP.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details