Lenders licence required or not

Sir
when anybody gives loan to a firm or pvt company by cheque, as per IT law the firm claims deduction of interest at 12-15%, and lender gets interest.
Now as per law when you give money and charge interest then he has to get the lender's licence from govt.
Then taking interest is legal or not
Replies (3)
Quick Summary
This discussion clarifies whether a lender's licence is required when providing loans to private companies or individuals, especially when interest is charged. The consensus is that a licence is generally not needed for individuals making an investment, as long as they declare the interest income in their tax return. The focus is on distinguishing between an investment and a business activity requiring formal licensing.

License is not required to individual who is not doing such business. It can be just investment. He/she has to declare the interest income in relevant ITR.

👍thanks

You are welcome.           

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
23 July 2026
CA Inter

Vikram Jadhav and Company

Pune

CA Inter

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

G A R U D & Associates

New Delhi

CA Inter

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
Featured 18 July 2026
CA Articleship

apricus india

Mumbai

CA Inter

View Details
Follow