Tax querry
This query is : Resolved
18 December 2012
Dear Sir,
e.g. if firm is established as on 01.05.12 and it is registered in my name. Earlier i was doing a job but my salary was below the tax slab,so i dont filed any return.
Now we want to buy van for office use and want to take loan for the same. But the bank asks for IT Return for loan purpose which i dont have. So they asked me to provide my father's IT return and said that they will grant me loan but mentioning my father's name as co-applicant.
My question is that if i applied for loan with my father's name for co-applicant,could I show the whole amount of loan,it's interest and depreciation of the van in the business's Balance sheet & Profit and loss account. Or whether I can claim the loan,its interest and depreciation certain percentage only while calaculating business income
e.g. if firm is established as on 01.05.12 and it is registered in my name. Earlier i was doing a job but my salary was below the tax slab,so i dont filed any return.
Now we want to buy van for office use and want to take loan for the same. But the bank asks for IT Return for loan purpose which i dont have. So they asked me to provide my father's IT return and said that they will grant me loan but mentioning my father's name as co-applicant.
My question is that if i applied for loan with my father's name for co-applicant,could I show the whole amount of loan,it's interest and depreciation of the van in the business's Balance sheet & Profit and loss account. Or whether I can claim the loan,its interest and depreciation certain percentage only while calaculating business income
Sunny Sonwal
(Expert)
18 December 2012
Could you please confirm that Firm is registered with your name only or your father is also partner in that firm?
Beacuse the firm has 2 minimum partner.
As per my understanding, you and your firm both are diffrent entity so adjustment will be done accordingly.
Beacuse the firm has 2 minimum partner.
As per my understanding, you and your firm both are diffrent entity so adjustment will be done accordingly.
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18 December 2012
Sir,I know dat firm is a different entity from it's owner bt still i would like to know whether loan taken in owner's name for business purpose can be shown as firm's asset and whether such loan's interest could be taken as an expense or not.
Also if my father is co-applicant then whether can we show whole amount of loan in Balance sheet or only partial will be granted?
Also if my father is co-applicant then whether can we show whole amount of loan in Balance sheet or only partial will be granted?
Guest
Guest
(Expert)
18 December 2012
first of all i would like to congratulate to you for starting a business.
yes you can claim the whole interest as your own expense provided the purchased vehicle is registered on your name and payment of installment has been made by you. dont worry just focus on business. and all the best.
your father is just a co-applicant
yes you can claim the whole interest as your own expense provided the purchased vehicle is registered on your name and payment of installment has been made by you. dont worry just focus on business. and all the best.
your father is just a co-applicant
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