16 May 2014
An individual, who wanted to start a business but for want of past balance sheet and IT Returns, he couldn't avail business loan. However he obtain personal loan and the proceeds were entirely used for the purpose of his new business. My question is can he claim deduction for interest on this loan in P/L account ? Also whether this loan can be brought as business loan in his balance sheet ?
16 May 2014
yes, As the loan has been used for the purpose of business,interest paid shall be set off against the income from the said business. It can also be shown in Balance Sheet as unsecured loan.
CAclubindia
