If I take a personal loan from a friend & use it for my business, can I take a deduction of interest paid to him from my income for the purpose of Income Tax.
If so under which section of Form ITR4 should I take this deduction ?
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Deduction of interest on loan
Replies (5)
hello sunder,
whether you take loan from friends ,family or relatives,the interest on that portion is always admissable if there is direct nexus between the loan and the business,therefore your allowed to claim interest as deduction
regards
sripal jain
i think you can claim under section 37(1) as general deductions,im not sure regarding it
regards
sripal jain
if you have utilised loan amount in business then you can take deduction
Under which section ?
Can I take the deduction for a loan in the current year for which I have not taken deduction in my previous IT returns ?
you cannot claim a decution for previous year in current year,and the above case falls under general deduction under section 37(1)
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