Is anyone aware bout any new provision whereby interest free unsecured loans received by firms wud be added back in the income of the loan provider due to the loan being interest free. I am told the same provision is w.e.f 1/9/2005. Plz. can anybody confirm or authentically deny the provision?
The provision applies only to amounts paid without consideration. In the case of loans, they are returnable / repayable. That itself would be a consideration. Hence the provision does not apply to unsecured loans
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