The Assessee (Indiavidual) had Paid a Interest on Unsecured Loan. Unsecured Loan obtain was invensted in Private Limited Co. in which the Asseesse is the Director / Shareholder as Loans And Advances for Business Purpose
Give the Advise on the Interest Paid on Loan
Can Assessee Claim Such Interest under IFOB as Negative Income and
Can he Set off this Loss Against his other Income
u can claim deduction of interest piad only when the amount received is used for your business purpose. If the amount received as loan is given to other person without any interets or at the interest rate below the rate on which u receive it, then the interest paid or differential interest, as the case may be, is disallowed.
Your article is helpful; But i want to know that " if the "X" person take loan from the "Y"(Friend of 'X') person , then is there any benefit to Y for the loan given to the friend and wether the Interest on Loan is taxable to Y.
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