Dear Sir/ Madam,
I am an individual and am planning to provide say 5 lakhs at an interest rate of 24% per annum for 2 years to a proprietorship firm / proprietor, without any kind of mortgage. I would be receiving interest on a month on month basis, until my principal is returned.
a) What is the procedure to be followed in terms of agreement / promissory note to safeguard my money.
b) What action can I be able to take against the proprietorship firm / proprietor, if the interest or principal is not paid to me.
c) Would I need to pay tax for the interest received. If so, where can I get the details of how much tax need to be paid.
CAclubindia
