Does interst on loan for business get tax deduction even when the loan is from a friend in the form of a promissory note/loan agreement? Is loan for business purpose still considered 'business loan' if the lender is an individual?
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Tax Deduction on business loan
Replies (6)
Yes. Interest on business loan from a friend would be deductible. But if your nature of entity is a firm then interest rate applicable cannot exceed certain specified limit.
Agreed with Deepa
Deductible means, u/s VIA.
The answer is not, Only Housing loans & Education loans get deductions.
But for a treat as an expense, it's for business purpose, it's allowed, with valid documents.
The answer is not, Only Housing loans & Education loans get deductions.
But for a treat as an expense, it's for business purpose, it's allowed, with valid documents.
No deduction under chapter VIA , not available .
I would like to clarify that with the usage of word "deductible" in my reply, I meant an allowable expense not Chapter VIA deduction.
You are right, Deepa Ji, Allowable as an expense, taken for business.
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