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NAYAN (Querist)
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18 June 2020 Hi, I Have a Question
A partner purchase Car And their Emi Paid in Company Account Interest Entry pass or not ?? Any Partner Reimbursed Interest Exp in their personal Income Tax return?? If Interest entry does not passbook of account ledger not match please give Suggestion for that.

Thanks In advance

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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18 June 2020 If partner purchase car for its personal use then you don't need to do interest entry in your company account of partner's loan. you have to debit partner account and credit to bank account as withdrawl. so simple it is not company expense or liability whenever EMI gone pass the entry as I said or any other situation plz ask.

NAYAN

NAYAN (Querist)
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19 June 2020 Partner reimbursed Exp in their Personal Income Tax Return

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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19 June 2020 yes, partner have to take into personal accounts. if you reimbursed any amount withstanding interest then also it will be the part of partner capital reduction no it will not be any part of company expense.

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