10 September 2009
A has taken Rs.100000 on loan @ 18%p.a.He invested Rs.50000 on which he gets interest @ 14% & Rs.50000 is contributed by A in p'ship firm as capital on which he gets interest@ 12%.
Pls tell tax effect supported by relevant provisions.
10 September 2009
AN EXPENDITURE FOR THE PURPOSE OF EARNING INCOME IS ONLY ALLOWABLE.....AO MAY DISALLOW THE EXCESS INTEREST PAID ON THE GROUND THAT IT WAS NOT FOR THE PURPOSE
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