IndigoLearn

Forums

Pgbp

Sir in 22sum interest paid to major son on deposit is allowable expenditure or not

Attachments

Screenshot_2021-01-12-08-15-49-610_cn.wps.moffice_eng.jpg


Mini Priya

Mini Priya

CA Inter

4K+

12-Jan-21 08:19

21

Answers (6)

Best Answer

Bro why it is allowed

Allowed business expense u/s 36(1)(iii) the amount of the interest paid in respect of capital borrowed for the purposes of the business or profession You can borrow money from relatives for using it for your business and interest payable by you will be allowed as business expense. But if AO (Assessing Officer), thinks that you have paid excessive or unreasonable amount of interest to the relative as compared to the fair rate prevailing in the market, then excessive or unreasonable shall be disallowed.


Deepak Gupta

Deepak Gupta

CA Inter

1K+

12-Jan-21 15:05

Allowed


Suraj Lakhotia

Suraj Lakhotia

Admin

12-Jan-21 08:57

Why it is allowed sir because it is not business expenses


Mini Priya

Mini Priya

CA Inter

4K+

12-Jan-21 11:53

Allowed


Vishnuvardhan Raju

Vishnuvardhan Raju

CA Inter

825

12-Jan-21 13:04

Allowed

Bro why it is allowed


Mini Priya

Mini Priya

CA Inter

4K+

12-Jan-21 13:14

IL Pass percentages
Tally Free
Quote
Refer
EMI
Lazypay
Past_Exams