What is the provision for loan against provison

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2013 i was enjoying Cash Credit in my proprietorship concern, now the said cash credit converted into Loan Against Property.

so, what is the provision under Income Tax Act, regarding this matter.

the property is residential in the name of proprietor.

so, please help me about this matter.

Thanking you

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

03 March 2013 It is important to focus on the application of the borrowed money. The money, if, is still used in the business, interest will be allowed as a business expenditure.
.
In this case the bank has replaced the security from stock (+Book Debts), to the Property. so from IT point of view it hardly makes any difference.
.
Your case is of Mortgage Loan. However, care must be taken in case of term loans- in repaying the installments by keeping in view the provisions of Section 43B.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now