Interest on unsecured loan

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CA SHUBHAM (Querist)
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14 September 2014 hello , i want to know that kya unsecured loans par Interest charge karna Mandatory hai in the books of a/c, & if yes then what will be the minimum and maximum rate upto which interest can be charged. Also explain whether tds will be deducted if interest is charged on unsecured loan. ?

Thanks In Advance....

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 September 2014 it is not mandatory. But always advisable to charge. There is no minimum or maximum rate.

TDS is to be deducted as per section 194A