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Jaya Lakshmi Kona   24 October 2019

Taxability of income from capital received by a proprietor

if a proprietor received interest income on capital. Is this income allowed or disallowed as per income tax act. if disallowed what is sec please tall me. thankyou

 5 Replies

Abhishek Dudhwewala

Abhishek Dudhwewala (Student CA CPT )     24 October 2019

In case of sole proprietorship, proprietor is not having any different identity, so how would it be treated as income on capital
1 Like
rama krishnan

rama krishnan   24 October 2019

You can't pay interest to yourself. so you can't claim deduction for interest from your profits
Kapadia Pravin

Kapadia Pravin   24 October 2019

Interest on capital of proprietor is not expenditure but it's appropriation of profit.

The question of it's Allowance as expenditure does not arise
Jaya Lakshmi Kona

Jaya Lakshmi Kona   25 October 2019

Thankyou sir but under which sec it is not allowed as expenditure to the propreitorship please tell me sir
Kapadia Pravin

Kapadia Pravin   25 October 2019

There is no need of any section for your query.

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