Section 43b of income tax act
This query is : Resolved
13 August 2015
An Individual Assessee (subject to Tax Audit) has taken loan from L.I.C against his Policy. He has not been paying interest over the loan, the loan principal and interest will be subtracted from the policy proceeds when it matures.
My query is whether the interest will be allowed on accrual basis or disallowed u/s 43B. Whether L.I.C. is a financial institution for the purpose of aforesaid section?
My query is whether the interest will be allowed on accrual basis or disallowed u/s 43B. Whether L.I.C. is a financial institution for the purpose of aforesaid section?
Amol S Joglekar
(Expert)
13 August 2015
LIC, GIC are very much covered under the definition of Financial Institution.
The same shall be disallowed under section 43B.
The better course would be not to claim the same and debit it to DRAWINGS account.
The same shall be disallowed under section 43B.
The better course would be not to claim the same and debit it to DRAWINGS account.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
