Interst on unsecured loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 my client is having a proprietary concern which is an auditable unit now my client has taken an unsecured loan from kotak bank @ 15% and is paying interest on the same. moreover he has advanced this money to his various group pvt. ltd. cos. in which he is director for which he is receiving interest @ 12%. whether int. exp. can be claimed as deduction in his individual return agtainst his interest income?

CA PRAVIN

CA PRAVIN (Expert)
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05 October 2011 While calculating business income interest paid to Kotak bank will be disallowed.

U will claim deduction u/s 57 of Income Tax Act in calculating income from other sources

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2011 please be more explanatory

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