i have given one person 10years back 500000 rs in small small amount which i dont have records now with overall interest i have asked him rs 1000000. he gave me a cheque. i am working in private job my CTC is 12 lac. How can I adjust this income so that there is no query raise by income tax. my wife is also working but her income is 30k per month. any solution.
This interest is not recognized. The interest earned is not kept in a bank. Not accepted. pls keep that interest segregated. personal loan and repayment is not recognized as income from other sources.
You should have offer that interest income on accrued basis every year so that you no need to offer interest income to tax in the year of receipt. now in your case you are saying your borrower paying now. that means you have to offer your total interest income now.
interest income will be taxed under the head income from other sources.
how did you gave money to him through bank or cash??
CAclubindia
