Will interest paid to mother for loan taken will be allowable under IT Act ?
vijay
(.)
(212 Points)
Replied 01 May 2009
Hi Mr. Arvind,
Please explain your problem
Regards
Vijay Kumar
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 01 May 2009
Mr. Arvind
If mother is holding separate status in I T and has souce of fund, it can be claim as expenditure at reasonable rate of interest if it is taken for business pupose from head from "Income from business " and if it is for construction / purchase of house from "House property etc. for other head, income should have earned from the loan taken.
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