Does loan given by partners to company classified as income?

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Kausik Dutta

23 Points Joined June 2017

Suppose a partnership company has 3 partners. The company wants to buy a property but in firm's bank account they don't have enough amount to buy the property. Then one of the partners decided to lend a interest free loan of say 50 lakhs to the company (to buy the property ofcourse). Company agrees to return the loan to the partner when time favors.

The company wants to file return under 44 AD. Does that loan from one partner count as INCOME to the firm or does it classify as pure LOAN?

Answer from a knowledgable person would be really appreciated.

Replies (3)

Guest

It is a loan, hence will be treated as 'Loan'.

PRABIR PAUL

*****Accountant***** Never insult to a

1448 Points Joined January 2017

A partner can gives loan to partnership firm. But loan must be paid and repaid digitally.

Kausik Dutta

23 Points Joined June 2017

Originally posted by : SANTU PAUL
	A partner can gives loan to partnership firm. But loan must be paid and repaid digitally.

Sure, loan should be paid electronically. May I know how to state about this loan in new ITR 4S form? Does it come under ITR 4S -> Schedule AL -> Liability in relation to Assets at (A+B+C) ?