Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
05 July 2011Friends
One point which often baffles me is that what will be the tax treatment if unsecured loan given by a person to a company waives it.
regards
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 05 July 2011
Let us discuss..
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 06 July 2011
Let us discuss...
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 11 August 2011
Friends
Can we discuss...
Regards,
Rehbar Siamwala
(Sr. Executive Taxation)
(112 Points)
Replied 11 August 2011
WAIVING OFF YOUR LIABILITY IS NOTHING BUT YOUR INCOME AND WILL DEFINITELY INCREASE COMPANIES TAX LIABILITY
FOR THE INDIVIDUAL GIVING UNSECURED LOAN WILL BE HIS LOSS OF DEPOSIT GIVEN AND THUS AN EXPENSE
Amit
(Chartered Accountant B.Com(H))
(453 Points)
Replied 11 August 2011
As per section 41(1) waiving of trading liability and not loan( whether secured or unsecured) amount to remission or cessation of trading liability which shall be deemed to be the income under the head PGBP of the PY in which such remission or cessation took place.
CAclubindia
