Can a deposit amount be conidered under standard deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2011 Hi,
I invested Rs. 80,000 on my brother's business [under his name] as "Deposit Money" for acquiring an agency [refundable at the end of agreement] .

Can I show it under Investmenst while filing my ITR.

If possible please recommend a section / sub section under IT Act for the same

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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05 August 2011 this is loan from you to your brothers business so you show this in loans and advance in ITR as loan given (Asset).

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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05 August 2011 this is loan from you to your brothers business so you show this in loans and advance in ITR as loan given (Asset).

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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06 August 2011 I agree with the expert

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2011 Thank you for the prompt response Anoop.

1. I am a salaried person. So should I show it as deductions [Loan Given] under section VI A. If not, please suggest the appropriate section in Form 16. [if possible with relevant Section / sub sections].

2. If I cannot show it under section VI A. Then Can i also, separately, declare an amount of Rs. 1 lacks as investments and get a deduction whie filing ITR.

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2011 Please advice...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 August 2011 Amount invested in Brother`s Business not eligible for deduction under Chapter VI-A and no deduction allowed under Salary income also for such payments

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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07 August 2011 Amount which you given for your brother business is not deductible for income tax purpose. it is only personal loan given to other so it can reflect on your personal balance sheet not in income tax deduction.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2011 Now,
Can my brother show it as Income Tax deduction while filing the ITR.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 August 2011 your brother can show your amount as loan received