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business loan
is business loan taxable income?
Replies (3)
No..Loan is not income and needs to be repaid.
loan is a liability not income
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.
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