22 August 2012
1 annexure we have to make in tax audit regarding amout of loan taken or repaid. so my question is that whether we have to include interest amount also.. for example opening outstanding loan(loan taken 5 yrs back) is 100 during the year no further loan was taken and end of the year interest acrrued Rs 20 so loan amount becomes 120 on closing date i.e 31st march. so either we have to show 100 or 120. plz explain
23 August 2012
Dear Rohit, The answer is in your question itself. Reporting is to be done with respect to Loan Taken or Given. There has to be a transaction and it needs to be in capital nature to be classified as Loan. Interest is an Expense and Income for other party. If you add it to loan it does not mean you taking a loan. hence it need not be reported.
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