assesse being partnership firm.
during the concern year firm has given unsecured loan & also received depositor interest as income, hence the interest income is to be taxed under which head of income?
1) PGBP income or IFOS ?
Main business of firm is transportation business but during the concern year firm having access money & given the same to others as unsecured loan & from it received interest. so interest is to be chargeable under which head?
Dear Sejal,
Income received from business operation charged under the head of PGBP, where any other income received other than operation of business to be classified as Income from other source
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respected sir,
during the concern year few other ponts are:
1) assessee has filled return u/s 139(4)
2) having no profit no loss situation because total profit is distributed as interest & remuneration to partners with in u/s 40b as per Act. while calculating total profit it includes interest income also.
3) if we take interest income as IFOS than after giving interest & remuneration firm having business loss amd IFOS income.
4) firm can set off the PGBP loss against IFOS income in same year even though return is belated .
Dear Sejal Patel,
Where assessee file a return under section 139(4) the Loss from "PGBP", cannot be set-off with income from other source
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