11 August 2010
can interest paid at 30% be disallow on the ground of excess payment to relative. the loan amount is around 2.25 lacs and interest for the year is rs 65000. the loan is taken for the purpose of purchase/ construction of house and the interest is claimed u/s 24b as deduction from house property?the assessee does'nt have any b&p income so balance sheet is not required to give with itr, so he can be saved.
11 August 2010
variations to some extent can be allowed from the market rates but this much high is quite difficult to justify.
As you said that details are not to be given in ITR, so if this matter get overlooked by the AO, then only you will be saved from any IT notice or disallowance.
CAclubindia
