I HAVE PAID MY ENTIRE OUTSTANDING LOAN AND STILL THERE IS BALANCE IN THAT LOAN ACCOUNT. WHETHER THE SAME WOULD BE TAXABLE AS MY INCOME.
Miss Mansi Bhojani (Practicing Chartered Accountant) (1693 Points)
08 June 2015I HAVE PAID MY ENTIRE OUTSTANDING LOAN AND STILL THERE IS BALANCE IN THAT LOAN ACCOUNT. WHETHER THE SAME WOULD BE TAXABLE AS MY INCOME.
Hitesh
(Finance Professional)
(21 Points)
Replied 10 June 2015
If you have paid your entire loan amount, then there should be no balance left in that account. And if there is balance left in that account which you dont have to pay, then that balance is your income as it is nothing but loan amount foregone, then the taxability depends on the nature of loan. If the loan that you have taken is capital in nature, then the amount foregone would be capital receipt otherwise revenue receipt i.e taxable
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