Loan to capital treatment

Interest expense allowed against dividend income or income in respect of units of a mutual fund subject to max. 20% of such income as per sec 57 of income tax act.

A loan may or may not be a current asset depending on a few conditions. A current asset is any asset that will provide an economic value for or within one year. If a party takes out a loan, they receive cash, which is a current asset, but the loan amount is also added as a liability on the balance sheet.