Unsecured loan.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2012 Sir,
One of pvt ltd company(a) taken unsecured loan from person(B). B is taken the same amt from individuval (c). The interest on unsecured loan directly pay to 'c' by 'a'.
In the books of accounts in compnay loan is in the name of 'b'. The problem is Which I can deduct the TDS and whom to issue? Pls clarify. What entries can do?

Thanking you,

Guest

Guest (Expert)

17 July 2012 This type of payment is not allowed by income tax. Kindly make necessary entries to make payment of interest to Mr. B only. Payment of interest to Mr C is the head ache of mr. B why is the company bothered about that?
Also inquire whether Mr. C is related to Directors/ Promoters/ Kay Mgt. Person of the company?