Income tax and sarfesi law query
Dipayan Bhattacherjee
(Querist) 11 May 2013
This query is : Resolved
I want to develop a project in Pune. I had applied for a loan for the same from a Private Bank in India. The bank has agreed to provide me with the loan in return of mortgage of 10 acres of land (title mortgage).
Can the experts in this forum help me out with the compliance requirements for the above loan under
1) Income Tax Act, 1961
2) SARFESI Act, 2002
3) Companies Act, 1956
RAJU O.F.,
(Expert) 13 May 2013
For availing the loan you had mentioned, the three Acts have no connection. If the property offered as security is Agricultural land, then bank cannot proceed for sale of the said property under SARFAESI Act.
M V Gupta
(Expert) 13 May 2013
Income Tax Act would apply while computing ur business income. u can claim the Interest paid on the loan as business expenditure while computing the taxable income. SARFESI Act would come into play if u default in repayment of the loan taken by you from the Bank. Under the Act the Bank can attach ur properties and sell them by public auction to recover the loan amount without filing suit in the Court. If you are a company (Pvt or Public) then companies Act would apply while availing the loan. The Company is required to pass necessary resolutions to avail the loan from the Bank and give necessary security for it etc.
