Taxability under which head
This query is : Resolved
nupur phophalia
(Querist)
30 August 2016
Guarantor has to repay the loan of principal borrower to prevent his house, kept as mortgage for the loan of principal borrower.
Now guarantor has claimed this amount of loan repayed by him from principal borrower.
Principal borrower has accepted this liability and is paying interest @ 10% on such amount to guarantor.
Moreover, the guarantor repayed the said loan by taking loan from and NBFC @ 12%. And now paying interest to NBFC.
*NET IS THE EXCESS OF 2% of INTEREST PAID TO NBFC OVER INTEREST RECEIVED FROM PRINCIPAL BORROWER*
Now the questions are:
1. Whether this loss of 2% of interest is to be shown under the head INCOME FROM OTHER SOURCES?
2. If not then under which head?
(Guarantor has no income from any source.j
CA R SEETHARAMAN
(Expert)
31 August 2016
Loss has to be debited to his capital account.
Amol S Joglekar
(Expert)
31 August 2016
loss can NOT be claimed
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
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GSTR9 Annual Return
- Ito add credit side of bank
- Employee secondment
- Gift to nri relatives resides in usa
- Applicability of tax on invoice
- Import of Capital Machine
- Form 144 TDS Return Validation error
- LLP audit and disclosure
- Rent agreement of House of deceased person
- Rectification under processing even after 6 months cpc portal
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
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
