NBFC

This query is : Resolved

CA. Jyoti Baid (Querist)
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06 May 2010 Respected all,

A NBFC Company engaged in the business of trading in shares, securities,etc. is lending money to other companies i.e. giving loans for interest.

Now the interest received on loans will be treated as INCOME FROM BUSINESS or INCOME FROM OTHER SOURCES.

regards,
Jyoti

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 May 2010 Income from Business

Gajendra R. Tiwari

Gajendra R. Tiwari (Expert)
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06 May 2010 If the primary business of the above mentioned company is trading of Shares & Securities and lending money then the interest received on loans will be treated as Business Income.

if the money lending activity is for investing purpose done occasionally then interest received will be treated as other income.