07 January 2011
Dear Experts, My company has given Rs 7,50,000.00 as un-secured loan in may 2008 now the party has repaid the same in 2 installments one in dec 2010 and other in Jan 2011 now what my doubt is on this amount how can we calculate interest and from which date it is to be calculated and the interest is simple interest can any one please solve this and determine the interest amount it is very urgent
07 January 2011
Interest is to be calculated from the date of loan given till the date of repayment and the same is to be charged as per the rate agreed between the parties and the interest can be simple interest or compounded. For TDS on interest the same needs to be deducted @ 10% on accrual basis at the end of the financial year.
CAclubindia
