Can anyone help me????
shibendu banerjee (student) (62 Points)
24 September 2013shibendu banerjee (student) (62 Points)
24 September 2013
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 24 September 2013
Dear Sir,
No, the interest on such loan would not be allowed to her as deduction u/s 24(b). However, any repair expenses she bear on such building (being a tenant) would be allowed to her u/s 30.
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
shibendu banerjee
(student)
(62 Points)
Replied 24 September 2013
Thank U CA Lovely Arora for ur reply. Yea she should not get any deduction for payment of interest on such loan u/s 24(b). but my question is as the loan is a professional loan whether interest paid on such loan is deductible as business expense?
Regards
Shibendu Banerjee
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 25 September 2013
shibendu banerjee
(student)
(62 Points)
Replied 25 September 2013
Thanks Mr. Ravinder Singh for ur reply. i have no idea about the topic Deemed Building, i will defineately see section 32. thanks for such info. but can u say that if a part of such professional loan has been given to employee as a loan as i told in my question, then interest paid on such loan by the proprietor of nurshing home can charge it in the P/L a/c as per income tax act?? plz help me?? i cant find any ans on this issue.
Thanking U again
Shibendu Banerjee
Mukesh Goel
(CA,CFA)
(103 Points)
Replied 25 September 2013
Hi Shibendu,
Since the loan is used for the purpose of buisness it will get deduction under the income tax act. As you said loan is given to employee, then we can have FBT (Fringe benefit tax) attracted here which the proprieter has to say on the interest benefit given to employee.
Thanks
Mukesh
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 25 September 2013
Agree with Mr. Mukesh on levy of FBT on such perquisite, but i don't think such loan was used for the business.... it's given to employee... not used for business purpose..
Thus, if it's used for business, by employee, then, it's interest payment would be allowed in P&L otherwise not. and such transaction would attract FBT provisions.
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 25 September 2013
shibendu banerjee
(student)
(62 Points)
Replied 25 September 2013
Mr. Ravinder Singh, Mr. Mukesh Goel & Mr. Lovely Arora thank u all for sharing ur valuable knowledge. All are very helpful to me and i got my ans.
Thank u all
warm regards
Shibendu Banerjee.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India