Taxability of waiver of working capital loan

This query is : Open

CA BIREN SHAH (Querist)
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27 June 2012 Sir,
1. whether waiver of working capital loan by bank is taxable under income tax act?
if yes then please provide me some material so i cab prove it?

2. what will be the answer if unsecured loan taken by a pvt ltd company from relative of director of company is waived by co.?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 July 2012 There are 2 parts
1) Capital
2) Revenue
If you have debited Interest in past and if that is waived then it is to be treated as income

If the original loan amount is waived then it is capital receipt and not taxable

CA BIREN SHAH

CA BIREN SHAH (Querist)
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09 July 2012
What will be the taxability if it is unsecured loan?

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