One of my Uncle has purchased foreign currency amounting to Rs 29 lacs by taking loan from relative and spent it on his doughter studies abroad and the exchanger has deducted TDS u/s 206CQ.
My queries is
1. can we booked 29 Lacs as an Drawing from capital or
2. If I treat it as drawing, capital balance in balance sheet is becoming negative
is their other way to account this transaction in our book of accounts
3 Can I claim TCS in my income tax return
kindly provide the correct solutions
Since there was a loan first, there needs to be a loan entry. That way the Bank balance will increase.
Then when you make the expense entry for the forex Purchase, you should not have a negative balance issue.
And yes, tcs can be claimed.
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