Friends
One point which often baffles me is that what will be the tax treatment if unsecured loan given by a person to a company waives it.
regards
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Waiver of unsecured loan
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Friends
Can we discuss...
Regards,
WAIVING OFF YOUR LIABILITY IS NOTHING BUT YOUR INCOME AND WILL DEFINITELY INCREASE COMPANIES TAX LIABILITY
FOR THE INDIVIDUAL GIVING UNSECURED LOAN WILL BE HIS LOSS OF DEPOSIT GIVEN AND THUS AN EXPENSE
As per section 41(1) waiving of trading liability and not loan( whether secured or unsecured) amount to remission or cessation of trading liability which shall be deemed to be the income under the head PGBP of the PY in which such remission or cessation took place.
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