Income tax

Tax queries 336 views 1 replies

I HAVE PAID MY ENTIRE OUTSTANDING LOAN AND STILL THERE IS BALANCE IN THAT LOAN ACCOUNT. WHETHER THE SAME WOULD BE TAXABLE AS MY INCOME.

Replies (1)

If you have paid your entire loan amount, then there should be no balance left in that account. And if there is balance left in that account which you dont have to pay, then that balance is your income as it is nothing but loan amount foregone, then the taxability depends on the nature of loan. If the loan that you have taken is capital in nature, then the amount foregone would be capital receipt otherwise revenue receipt i.e taxable

 


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