Interest charged lower than banking rate

This query is : Resolved

S.Ramakrishnan (Querist)
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20 December 2008 Interest charged on unsecured loan is lower than banking rate. is there any implication or section applicability from the view point of lender regarding lower receipt of income & from the view point of borrower lower payment of interest.The relationship between payor and payee is group concern

ravi taneja

ravi taneja (Expert)
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27 December 2008 There is no implication on lower interest charged by payor.

C A GROUP COACHING

C A GROUP COACHING (Expert)
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28 December 2008 if lender company has borrowed from bank/fin.inst. & paying interest than the income tax officer shall have the discretion to add the diff of interest in the lender co. borrowing (-) lending rate & diff will be considered as notional income. & his stand & judgement will stand valid even in appeal you will not gain any benifit. there are orders to this effect

Chandrakant Ambani
Bombay
9819408963
9821240674

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