if any one have 20lakh fund and invested 10 lakh in his proprietor ship firm and rest funds borrowed from other and paying interest on it.but his own surplus funds of 10 lakh given to immediate family member without interest .so my query is paying interest in firm is eligible for deduction or not. please clarify
thanking you
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interest deduction eligible or not
Replies (3)
Yes, deductible..... but subject to interest chargeable over loan given to relatives....
loan given to relative with out interest
Assessing Officer has right to charge tax over the interest free loan as against interest paid by you.
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