TaxTMI 
TaxTMI 
TaxTMI 
Business Expenditure U/s 36
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....usiness Expenditure U/s 36<br> Query (Issue) Started By: - HIMANSHU JARIWALA Dated:- 28-12-2010 Last Reply Date:- 29-12-2010 Income Tax<br>Got 1 Reply<br>Income Tax<br>Mr. X has received remuneration ....
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....from partnership firm. Which he treated as his business income u/s 28(v). Against this income he claimed interest exps. which he paid on unsecured loan from from various parties. The A.O. wants to dis....
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....allow this interest exps arguing that remuneration received is salary income and interest exps can not be allowed. Can Mr. X Claim Intrest paid on unsecured loan as exps against remunuration received ....
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....from partnership firm which is treated as business income U/s 28(v). Pls. advise... Pls indicate case law if any? Reply By CA Rachit Agarwal: The Reply: Section 28(v) has following parts- 1. Intere....
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....st- Earned from the Capital Contribution made to Partnership Firm 2. Salary- Earned from his efforts and managing business. It is definite that to earn salary, no interest payments required. Hence i....
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....nterest payments not be allowed as deductions. However as soon as salary and interest both comes under the perview of "Income from Business/Profession", hence both could be netted off (i.e Salary fro....
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....m firm and interest payments to firm) to compute the income from said head.<br> Discussion Forum - Knowledge Sharing ....