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Rate of interest allowed on unsecured loans
what is the maximum rate of interest a trust can pay for unsecured loan taken by it?
Replies (9)
Quick Summary
There is no such restriction for rate of interest....
you can pay any rate of interest...
But if lender is Related party then A.O may disallow excessive interest u/s 40A(2)(b)
you can pay any rate of interest...
But if lender is Related party then A.O may disallow excessive interest u/s 40A(2)(b)
Which type trust you are referring to !! Trust paying interest is uncommon !! please clarify
I am asking for educational trust society
There is no such restriction on payment of interest. but in case of relative party the excess interest in comparison to market will be disallowed
You can pay interest as per your wish
Thanks for the replies
Welcome....... My Pleasure.......
My pleasure
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