Please Help: Unsecured Loan show in Balance sheet as a Capitla

Posted Date : 09-Sep-2011 , 05:05:31 pm | Posted By Mohammad Nazim

Dear friend please give me Valuable opinion on following metter

Capital of MR A 500000.00

Unsecured loan 200000.00

If Mr A want to increase his capital threw unsecured loan than what will be penalty in income tax act as well as other act

Now Mr A show his capital in the balance sheet as (own capital 500000.00 and unsecured loan 200000.00) Rs.700000.00 with out showing unsecured loan

Category : Income Tax | Answers : 2 | Comments : 2 | Hits : 1092

Answers

Answer By: Ashish Karundia

Dear Nazim,
There is no penalty if one increases his unsecured loan through genuine sources and is establish the same before the Income Tax Authorities.

Please let me know if there is any other issue.

Answer By: Ashish Karundia

Dear Vipin,

There is no penalty if one shows any amount as unsecured loan. The only thing is that the same should be from genuine source and should not be taken/given in cash otherwise the provisions of Section 269SS/TT will be attracted.

Comments

You need to be logged in to post comment

CA VIPIN GARG

10-Sep-2011 , 05:33:43 pm

No I don't think so there will be any penalty in the above case but can you please brief whether it has been shown intentionally or by mistake and if it has been shown with intention than is there any special purpose ??????