Hello...
My client had taken personal loan and the amount was shared between him and his friend. Entire EMI was deducted from my client's account. His friend used to credit his interest portion to my client's bank.
So whether this interest which is credited.. will it be considered as Income for my client
There are two views....
first........if your client is considering the whole 100 RS (just example) as interest deduction in income then the 50(half of 100 assuming half half interested is shared) will be considered your client income
second......if your client is claiming only 50 RS deduction then 50 RS receiving from fiend will not be income
CAclubindia
