Rate of interest allowed on unsecured loans

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14 Points Joined July 2019
what is the maximum rate of interest a trust can pay for unsecured loan taken by it?
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On 18 January 2021 at 13:32 Report
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215 Points Joined April 2017
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)
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On 18 January 2021 at 15:32
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17264 Points Joined December 2018
Which type trust you are referring to !! Trust paying interest is uncommon !! please clarify
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On 18 January 2021 at 21:17
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14 Points Joined July 2019
I am asking for educational trust society
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On 18 January 2021 at 21:49
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Accountant
4531 Points Joined February 2017
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
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On 19 January 2021 at 00:16
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Chartered Accountant
86500 Points Joined April 2011
You can pay interest as per your wish
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On 19 January 2021 at 04:04
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14 Points Joined July 2019
Thanks for the replies
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On 19 January 2021 at 08:09
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Chartered Accountant
86500 Points Joined April 2011
Welcome....... My Pleasure.......
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On 20 January 2021 at 22:21
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Chartered Accountant
86500 Points Joined April 2011
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On 20 January 2021 at 22:21
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Accountant
4531 Points Joined February 2017
My pleasure
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On 20 January 2021 at 22:25


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