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 ?
5 Replies
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 25 April 2012
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
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 25 April 2012
i think you can claim under section 37(1) as general deductions,im not sure regarding it
regards
sripal jain
Raman Aggarwal
(Expert)
(363 Points)
Replied 25 April 2012
if you have utilised loan amount in business then you can take deduction
Sunder
(Business)
(165 Points)
Replied 26 April 2012
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 ?
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 26 April 2012
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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