Interest to unsecured loan

This query is : Resolved

seeta (Querist)
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29 March 2020 If I have booked entry for interest to unsecured loan from relatives § friends on 31/03/2020 and will make the payment of interest in next month I.e April'20
It is allow as per income tax act or not?
last date for payment of tds for march'20?
Please reply

CA PARTH SHAH

CA PARTH SHAH (Expert)
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30 March 2020 If you have received from unsecured loan on 31-03-2020, you can claim interest for 1 day. You can pay interest in April 20. TDS on interest to be deducted if interest amount exceeds Rs 5000. Due date of TDS deduction will be 30-6-2020

swasti

swasti (Expert)
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02 April 2020 Interest on Unsecured Loan booked in March and paid in April is allowable under Income Tax Act. The last date for payment of TDS of March 2020 is 30.04.2020 but you can defer it upto 30.06.2020. But interest cost has to be borne for this.

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Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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02 April 2020 Yes, the interest on unsecured loan will be allowed in FY 2019-20 even if the interest is paid in the month of April 2020.
TDS to be deducted only if the interest amount exceeds Rs. 5000 for the year.
Further, the due date for payment of TDS ifor the month of March 2020 is 30.04.2020 but that can be paid with lower interest rate of 9% upto 30.06.2020.