Navit Bansal (Student) 28 January 2014

Taxation for unearned interest on loan

Need help of Income Tax Lawyers

A person has given a loan of 5 lacs to another person, 4 lacs in cash and 1 lacs by cheque after executing a loan agreement between themselves which is notarized. Transaction took place in February 2013.

Interest at a rate of 2%, i.e., 10,000 per month was to be paid but the person who took the loan could not pay even a single rupee till date.

I need to know that whether the person who has given the loan is required to declare the given loan in his income tax returns in any manner when no interest has been earned by him till date.

Thanks

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Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 29 January 2014

As many as 85 lakh salaried tax payers whose taxable income, including salary and interest income, is up to Rs 5 lakh, are not required to file income-tax return from now onwards.

“No income-tax returns is required for salaried persons whose annual annual taxable income including salary and interest is up to Rs 5 lakh.