Dear All,
We have applied for the Loan for renovation of House, bank has granted us loan against mortgage of Property , as predecided, Bank has made direct payment of Loan amount in the name of the Interior Decorators Account , meanwhile Decorator has changed many terms in the Contract by his own , which were not acceptable us , because of which contract was recinded .
Now, we have proceed for the renovation contract from some other contractors , wherein different kind of works shall be performed by different vendors ( like, Civil, electrician , plumber and Carpenter )
We have asked our earlier interior in whose Account bank has paid money to refund the balance amount of loan which he has not yet spent .
Now, we want to take back the money in saving Bank Account of the same bank from where we have taken loan , will there be income tax related issues , because now the balance amount will reflect as reciept from Contractor and it wont be direct deposit of funds from bank towards home loan disbursement.
Our EMI will be repaid through same saving bank account. Please guide us, it is urgent .
CAclubindia
