Amey Dobarkar (Chartered Accountant) 09 December 2019
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
Aditi Kaur (Practising CA) 1 September 2020
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BE YOURSELF BELIVE YOURSELF 09 December 2019
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
Kapadia Pravin 10 December 2019
No deduction of interest payment to your client.
The whole personal loan transaction and interest on EMI has no impact / no deduction to you and not your friend under income tax .
This is simple personal transaction without having any tax effect or tax benefit.
Ravi SADhiyan (CA Final) 10 December 2019
|Originally posted by : BE YOURSELF BELIVE YOURSELF|
|Then full 100 rs deduction will be allowed to your client and 50 RS will be. income|
No deduction related to Interest on Personal Loan Under Income Tax
Under Both Case Whether Salary Person or Business Man