Waiver of cooperative loans

Mr Goenka and Subramanian,

The waiver of the loan is sure a capital receipt and cannot bebrought to tax. But the total outstanding must comprise of someinterest also. This interest would be taxable since it amounts tocessation of trading liability u/s 41, a deduction in respect of theinterest having been allowed in the past year in which it was booked.Thanks,CA Sanjeev Bedi--- In http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/post?postID=N7JVRTf610MxQcP81meQ-8m4kaMtXtCv2P3YcroSprkuQumslBUmdmVnA18DfOD-khLnU_5c2CHtPzsJiIV8e0j0TTITNFC7In7s, PRAMOD GOENKA wrote:>>> The waiver of loan in this case should not be treated as income,rather it is a capital receipt. Only if a liability incurred for anitem of expenditure is remitted, it is treated as income.>> CA. Pramod Goenka>>> To: ICAI_CIRC_MEERUT_CA@...: venkatchalam@...: Tue, 8 Jan 200819:44:41 +0530Subject: {Brainstormers -CA} Waiver of cooperativeloans>>>>>> Dear all> One of my clients is rearing broilers on contract basis. A fewyears back he has taken loan from a Land Development Bank fordeveloping his broiler shed and the loan was categorised asAgricultural loan by the LD Bank. He was unable to repay it in time.Last year, the Govt. announced waiver of loans given by CooperativeBanks.My client was a beneficiary.> Is there any way to get exemption for the loan waived by theGovernment ?> CA V.ANANTHASUBRAMANIAN, PALANI>> ----- Original Message -----> From: CA Amresh Vashisht-Moderator> To: http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/post?postID=N7JVRTf610MxQcP81meQ-8m4kaMtXtCv2P3YcroSprkuQumslBUmdmVnA18DfOD-khLnU_5c2CHtPzsJiIV8e0j0TTITNFC7In7s> Sent: Tuesday, January 08, 2008 4:54 PM> Subject: {Brainstormers -CA} Blowing ,thought proving studentConvention By CA Jaideep N, Shah & CA Anuj Goyal>>>>>>>>>> CA JAIDEEP N. SHAH, Central Council member & Chairman of Boardof Studies and CA Anuj Goyal , Council member, a veteran CharteredAccountant from Ghaziabad, Dhruv agrawal, Chairman CICASA, & CAAmresh Vashisht made an extensive coverage of CA Students at CASTUDENT CONVENTION at Meerut today on 8th January 2008.As a speakerto session it's my pleasure to share with all of youthat howextenively and precisely ,all the issues partaining to studentproblems were discussed and clarified by the Shri Jaiddeep N.Shah.The studentrs at large have patiently heard their address. Aswe all are very much concerned for our students , the illustrativeaddress made it all come alive for a Crwoeded Student Convention.>>> Mr. Jaideep N. shah have initiated the address briefing thevarious points which are around the students causes.He expressed hispleasure for the strengh of the students present.He narrated thatthe world , oyr students are spreading their wings .The IndianCharteredAccountants are exhibiting their outstanding performancenot onlywithin the country, but across the globe.>> In his vibrant address Mr. Anuj Goyal, Concil Member mentionedabout their upcoming roles of CA;s in the blowing economic scene.Hesaid, the profession is growing, the economy is booming and all theCouncil members are working extremely hard in pursuit of perfectionand excellence to bring more laurels and credibility to ourprofession.He also said that the present situation of the professionis not a one day achievement, tough work have been done atleadership levels.He was loudly appreciated from all theparticipants.