Respected Experts,
If a member of HUF pays interest to HUF on loan taken from HUF then interest expenses can be shown under Income from other sources head if i have also shown interest income from FD?
Menu
Interest Paid to HUF
Replies (8)
For what purpose the loan was taken?
Loan was taken for investment in FD
In that case you will have to pay full amount of interest earned to HUF, as banking is not your business, and ITO would not allow such income distribution.
In short it means I can't pay interest to HUF as banking is not my business. Correct?
The reason is you have taken loan for investment in FD, which HUF can directly make investment.
Otherwise, you can take loan and if required, can pay interest to HUF also.
Thanks a lot for your valuable response.
You are welcome.
I hold diifetent views. you can lain it as deduction under interest income, so long as it is reasonable and there is clear nexus between loan funds and investment in bank FD.
Recent Topic
- 194JB INCOME
- Filing ITR3 where income under section 44AD with L
- What is superannuation fund
- GST Refund of input services under Inverted Duty S
- Dividend Reporting
- Real operational bottlenecks after firms use Tally
- Purchase return under gst
- Long Term Capital Loss - cannot be carried forward
- Cross-utilization of ITC between Trading and Resta
- Form 121 eligibility for non deduction of TDS for
Related Topics
CAclubindia
