Re payment of Loan
This query is : Resolved
20 December 2009
Can a Loan amt. due to its share holder be paid before payment of IT from the profits of a Pvt ltd co.Can interest be paid on the Loan amt.Ifso under what sec.
20 December 2009
Income tax is decided after preparing profit and loss account.
And payment of Interest is a charge against profits. It is a business expenditure which is allowable under Income-tax u/s 36(iii).
Hence you can pay interest before payment of income-tax.
However; you have to pay income-tax also. For which you can take another loan.
And payment of Interest is a charge against profits. It is a business expenditure which is allowable under Income-tax u/s 36(iii).
Hence you can pay interest before payment of income-tax.
However; you have to pay income-tax also. For which you can take another loan.
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