Wave of loan amount

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2011 If I had taken a loan before 3 years and now there is no need to repay the loan amount then what will be the treatment of this transaction in the books?

1 ) 08-09 Bank Dr 300000
To XYZ 300000
But at present XYZ is not in exist then what will be the treatment of this loan amount

Is 300000 will be treated as income for F.Y 10-11 ?

please tell me what adjustment we should passed....

Thanking You

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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29 May 2011 IF U ARE CARRYING BUSINESS THEN THIS WILL NOT BE TRAETED AS INCOME SEE MAHINDRA & mAHINDRA CASE, ISKRAMECO REAGENT CASE AND MANY MORE IF THE LOAN HAS BEEN BORROWED TOWARDS CAPITAL ASSET IF FOR WORKING CAPITAL ETC THEN LOAN AMT IS TAXABLE
INTERST WAIVED WILL BE TAXED
CA MANOJ GUPTA
JODHPUR
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