If I were to take 10 lac rupees loan from ten individuals for business purpose and promise then to pay a certain rate of interest, how do I go about reporting it to the tax authorities so that they don't ask me to pay tax on the principal amount but just on the profit that I earn after paying the interest amount?
2 Replies
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 04 October 2024
Even in a normal way, the Department is not asking to pay tax on taking loans from others. you need to create their ledgers under loans & liability. You may show interest as an expense on your books.
Recent Topics
- Clarity regarding Sec 16(4)
- GST ON HOTEL ROOMS details
- Relief for Delayed Filing of Tax Forms
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
Related Threads
CAclubindia
