Whether Society and Section 8 Company can give loan to another society and can charge interest?
This query is : Resolved
25 November 2023
Dear Sir,
One of our society and section 8 company wants to give loan to another society and on that loan, interest would also be charge by them. My query is whether section 8 and society can give loan to another society and would charge interest thereon as purpose of the society and section 8 company was formed for a charitable purpose. Whether chargeable interest would be considered as his non charitable income or business income.. Is society and section 8 company can charge interest on the loan and would earn interest as income.. Requested to present your views..
One of our society and section 8 company wants to give loan to another society and on that loan, interest would also be charge by them. My query is whether section 8 and society can give loan to another society and would charge interest thereon as purpose of the society and section 8 company was formed for a charitable purpose. Whether chargeable interest would be considered as his non charitable income or business income.. Is society and section 8 company can charge interest on the loan and would earn interest as income.. Requested to present your views..
25 November 2023
There is no bar for one charitable trust donating or advancing loan to another charitable trust registered under Section 12A.
It's a loan advanced to another charitable trust and the interest earned on it can't be considered as business income.
It's a loan advanced to another charitable trust and the interest earned on it can't be considered as business income.
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