The assessee was a private limited company and had claimed interest paid on loans as expenses, out of which, the assessee had paid interest of Rs.1,23,15,529/- on unsecured loans to persons covered under section 40A(2)(b) of the Income Tax Act, 1961. The rate of interest paid on such unsecured loan was @ 15% per annum. 08 April 2014 1.If the interest rate is between 4 to 6% or nil. What will be effect under income tax scrutiny? 2.If the loan given to relative or non relative for personal use or business. What will be effect under income tax scrutiny? 3.If the file comes under scrutiny then ITO will charge minimum 9 to 13% as interest income.