Taxation - Unsecured Loan

Hemchand Kohli (Accountant) (888 Points)

22 March 2010  

if we following Cash Basis Accounting System

the can we charged interest on Unsecured loan in Profit & Loss A/c at the end eventhough we have not paid interest.

for Eg. Intt on Unsecured Loan is Rs. 15,000/-  at the end as on 31-03-2010 if we don't pay can we treat as expense in F.Y. 2009-10 and we pay intt in April 2010