Sir
when anybody gives loan to a firm or pvt company by cheque, as per IT law the firm claims deduction of interest at 12-15%, and lender gets interest.
Now as per law when you give money and charge interest then he has to get the lender's licence from govt.
Then taking interest is legal or not
License is not required to individual who is not doing such business. It can be just investment. He/she has to declare the interest income in relevant ITR.
CAclubindia
