Chhalani and Associates
(CA - www.cachhalani.com)
(142 Points)
Replied 15 April 2019
No..Loan is not income and needs to be repaid.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 27 July 2019
1. Business loan cannot be a taxable income as it is nothing but a liability for the business.
2. But there was a wide debate that waiving of loan by the bank will be considered as income and it is subject to taxability.
3. To put the above doubt to rest, The commissioner Vs Mahindra and Mahindra (SC) it was decided that even waiving of loan by the bank would not tantamount to income and consequently the cannot be charged to tax.
Please correct me if the above interpretation has an alternative view.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
