Case Law Details
Case Name : Vipul Y. Mehta Vs. ACIT (ITAT Ahmedabad)
Related Assessment Year : 2007- 2008
Courts :
All ITAT ITAT Ahmedabad
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Assessee paid interest to the relatives at the rate of 18%. The AO was of the view that reasonable rate of interest is 12%, he therefore disallowed 6% under Section 40A(2)(b) of the Act. On appeal, the CIT(A) was of the opinion that the banks are charging interest at the rate of 16% and therefore he directed the AO to allow interest at the rate of 16%. It is submitted by the learned counsel that the loan taken from the relatives cannot be compared with the bank loan because the loan from the relatives are without security while the loan from the bank is secured. He also pointed out that in t...
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If my balance sheet shows unsecured loan near about 1 crore from relative & friends, how much tax apply on it if friends & relative not mentioned in their balance sheet???
Rulings are favourable
WE PAY INTEREST TO UNSECURED LOAN IN DIFFRENT RATE IN SAME YEAR . IS THIS WRITE
AS PER INCOME TAX RULES INTEREST ON UNSECURED LOAN GIVAN IS COMPOLSORY OR NOT
what is the allowable rate of Interest on unsecured loans to relatives as per section 40 (A)2b
whether remuneration to relatives comes under sec40A(2b)