finance given / taken and Form 15 G

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2011 Can i as an individual give loan and take loan from individuals on interest. is it a business income or income from other source ? what are the conditions for it to be business income ? Also, if my net interest income is about 3+ lac after paying interest to individual from whom i have taken loan ( and there is no other income ) and total tax liability is about 15000 or so which i have deposited in tax or paid ( 7000 from Bank interest TDS + balance paid ) so can i issue form 15 G to the person from whom i have advanced loan and can i ask them not to deduct tax on my interest income as most of the income is going in paying the interest. I do not want to go to ito for applying lesser tax rate . pls adv what is the solutions.

Ratan Sharma

Ratan Sharma (Expert)
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21 April 2011 If it is the regular feature of assessee having income from interest then it is the business income. If the assessee is involved in any other business but invested or advanced some money then it is from other sources.
Once the income exceeds maximum marginal amount chargeable to tax then you can not issue Form 15G whether there is any tax liability or not.

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2011 Actually we have issued form G not knowing this in the past so what is the implication now as it is under scrutiny

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