28 January 2014
if any person shows loan from his wife in his business nd paying interest to her, can he avail any deduction??? plz refer section nd link..
28 January 2014
interest is deductible u/s 37. But since the amount has been taken from relative, one has to see that interest should be reasonable because u/s 40A(2) any expenditure incurred by an assessee in respect of which payment has been made to the specified persons is liable to be disallowed in computing business profit to the extent such expenditure is considered to be excessive or unreasonable. Further, TDS must be deducted to avoid disallowance u/s 40(a). having regard to the fair market value of goods or services or facilities
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