If a Proprietorship firm gives/ receives loan during the year to his relatives and the loan is received/ repaid during the same financial year and outstanding amount as on 31st Mar..so is mandatory to provide interest on that repaid amount?Will any of the provisions under Income tax act will be attracted for fine?
Menu
Loan to related parties
Replies (3)
No, but better to keep a document to record this transaction.
no, prov. of intt is not necessary but sec 269ss and 269t should be followed for borrowing and repayment of loans.
Provisions of 269SS and 269T has to kept in mind and check if it is not borrowed money given to relatives. In such cases, Interest shall be disallowed.
Recent Threads
- CFSS Scheme
- Transfer of ITC from individual to LLP
- Query of Goodwill
- Remuneration to Partners
- Request For Dhirajlal Rambhia
- Tds deduction queery
- Check ITR1 on income tax Form ITR1 Instead of 1 ho
- Form 121 requirement
- Interest on reversal of ITC when ITC balance avail
- Is MirrorFly an Instant Messaging Software?
Related Threads
CAclubindia
