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Amey Dobarkar (Chartered Accountant)     09 December 2019

Amey Dobarkar
Chartered Accountant 
 24 points

| My Other Post

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

avater

Aditi Kaur (Practising CA)    1 September 2020

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BE YOURSELF BELIVE YOURSELF   09 December 2019

BE YOURSELF BELIVE YOURSELF

 20 points

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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

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Amey Dobarkar (Chartered Accountant)     09 December 2019

Amey Dobarkar
Chartered Accountant 
 24 points

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Assessee is Salaried employee not business

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BE YOURSELF BELIVE YOURSELF   09 December 2019

BE YOURSELF BELIVE YOURSELF

 20 points

View Profile | My Other Post

Then full 100 rs deduction will be allowed to your client and 50 RS will be. income

avater

Amey Dobarkar (Chartered Accountant)     09 December 2019

Amey Dobarkar
Chartered Accountant 
 24 points

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Ok...Thank You very much...

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BE YOURSELF BELIVE YOURSELF   09 December 2019

BE YOURSELF BELIVE YOURSELF

 20 points

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Your welcome....amey

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Kapadia Pravin   10 December 2019

Kapadia Pravin

 920 likes  14308 points

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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.

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Ravi SADhiyan (CA Final)     10 December 2019

Ravi SADhiyan
CA Final 
 265 likes  4405 points

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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


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