interest reporting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2011 I took a loan of Rs 1 crore from an investor to open a shop. I pay him interest of 15 lac at the end of the year.

I deduct tax at source from the interest that i pay him. Other than this, how can i inform income tax dept that i pay interest to this person.

Rasesh

Rasesh (Expert)
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23 March 2011 If your books reflect the position clearly i.e., loan, interst, lender etc, then no need to bother.

File the tds return properly and the person gets credit.

Your IT return will reflect your position and his IT return will reflect his income etc.

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