Wednesday, 4 April 2018

Income Tax Benefits You Get on Availing Chartered Accountant Loan

A Chartered Accountant (CA) loan is a useful debt instrument that is meant to fulfill all the firm-related needs of a practising or consultant CA. It comes under the main category of business and professional loans offered by banks and Non-Banking Financial Companies (NBFCs). They can be availed to finance the opening of a new CA firm, its branch, to hire employees, for office inventory as well as for paying bills. Certain lending institutions provide flexi loans wherein the applicant can withdraw funds as per the needs and requirements more than one time. Repayment takes place in two slots- in the first slot, i.e. during the tenure, only the interest on the amount withdrawn/utilized is to be repaid and in the next slot, the amount withdrawn is to be repaid.

When a person avail CA Loan, the portion of the profits generated that goes towards repayment of the interest of the loan is eligible for tax benefits. There is a specific section under the income tax act that specifies the same. The interest is then deducted from the business profits when calculating the taxable income of the CA.
The principal amount of the loan availed is not eligible for tax benefits as it is not earned. Depending on the lender chosen, the applicant can avail upto INR 35 lakhs. The basic procedure involves filling up the application form online after ensuring complete fulfillment of the eligibility criteria. The loan application is then processed and the sanctioned amount is disbursed in a couple of days. The resource given below will help you learn more about CA loans in greater detail:
Income Tax Benefits You Get on Availing Chartered Accountant Loan

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