Taxablity of benifit uder one time settelment of loan a/c
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 November 2014
Assessee is a Businessman. If the assesee opts one time settlement of bank loan Account and he gets benefits of reduction in loan outstanding by Rs. 70000/-, whether such benefit is taxable?
If taxable, Under which head of Income? Please explain.
If taxable, Under which head of Income? Please explain.
26 November 2014
IF loan is for Cash credit then it will be taxable as income from business and profession.
If loan is for Machinery then it will not be taxable at all.
If loan is for Machinery then it will not be taxable at all.
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26 November 2014
The benefits accruing our of business transaction: The benefit has come out of CAPITAL transaction and hence not taxable.
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26 November 2014
refer section 41(9) of income tax act 1961.
(remission and cession of liability)
(remission and cession of liability)
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