Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Deduction of interest on unsecured loan

variya harsh (surat) (28 Points)

04 April 2018

i have unsecured loan in personnel name and paying interest on that loan and i am using that loan fund in partnership firm can i take interest from partnership firm and adjust interest income from partnership
firm against interest expense on unsecured loan

Reply
Follow
Share

4 Replies

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 05 April 2018

Yes you can claim Interest expenses on loan against interest income from firm.

RAJA P M ("Do the Right Thing...!!!") (127453 Points)
Replied 05 April 2018

No... It's not acceptable. You can't transact it's your name in the Form...

But, You can use the name of who is given the Loan in Firm...

(Guest)

I agree with CA Rashmi.

The Query is that the partner took a bank loan and introduced it as capital in the firm. When he gets interest @ 12% from the firm on that capital.

He can deduct his bank loan interest exp from his interest income

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 05 April 2018

Interest on Loan taken by partner for introducing capital in patnership firm is expense for a partner & same is allowed against income received from Firm.

1 Like