Is interest on gold loan deductable under income tax act?

Others 171 views 1 replies

Swarna kamal Chandra

9 Points Joined January 2016

Respected Members,

I am running a small business and took a gold loan of Rs.2,00,000/- (Rupees Two Lakhs Only) from a leading and RBI registered gold loan company. I paid interest of Rs.45000/- (Rupess Forty Five Thousand Only) as interest on gold loan. Am I eligible to get deductions on tax which I paid as interest on gold loan? If yes, under which section?

Thanking You

Swarna kamal Chandra

Replies (1)

Deepika Yadav

561 Points Joined July 2017

No section of gold loan interest but if you are using loan for business then you can claim as business exp.

It means you can charge the intt amount in P&L A/C