Dear Sir,
One of our society and section 8 company wants to give loan to another society and on that loan, interest would also be charge. My query is whether section 8 and society can give loan to another society and would charge interest thereon as purpose of the society and section 8 company was formed for a charitable purpose. Whether chargeable interest would be considered as his non charitable income or business income.. Is society and section 8 company can charge interest on the loan and would earn interest as income.. Requested to present your views..
CAclubindia
