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15h agoUsing LAMF for Business: Tax-Deductible Interest?
Entrepreneurs can leverage a Loan Against Mutual Funds (LAMF) to fund business operations at 9–12% interest, often cheaper than unsecured business loans charging 12–18%. When used strictly for business purposes, LAMF interest qualifies as a tax-deductible expense under Section 36(1)(iii) of the Income Tax Act, effectively lowering borrowing costs. For instance, a 10% rate in the 30% tax bracket translates to roughly 7% post-tax. Maintain invoices and ledgers linking proceeds to business use, as mixed-purpose loans lose deductibility eligibility.
positive
15h agoUsing LAMF for Business: Tax-Deductible Interest?
Entrepreneurs can leverage a Loan Against Mutual Funds (LAMF) to fund business operations at 9–12% interest, often cheaper than unsecured business loans charging 12–18%. When used strictly for business purposes, LAMF interest qualifies as a tax-deductible expense under Section 36(1)(iii) of the Income Tax Act, effectively lowering borrowing costs. For instance, a 10% rate in the 30% tax bracket translates to roughly 7% post-tax. Maintain invoices and ledgers linking proceeds to business use, as mixed-purpose loans lose deductibility eligibility.
positive
Using LAMF for Business: Tax-Deductible Interest?
about 15 hours ago
1 min read
79 words
LAMF used for business qualifies for tax-deductible interest, reducing effective rates to around 7% and offering MSMEs faster, lower-cost funding than unsecured loans.
Entrepreneurs can leverage a Loan Against Mutual Funds (LAMF) to fund business operations at 9–12% interest, often cheaper than unsecured business loans charging 12–18%. When used strictly for business purposes, LAMF interest qualifies as a tax-deductible expense under Section 36(1)(iii) of the Income Tax Act, effectively lowering borrowing costs. For instance, a 10% rate in the 30% tax bracket translates to roughly 7% post-tax. Maintain invoices and ledgers linking proceeds to business use, as mixed-purpose loans lose deductibility eligibility.
Entrepreneurs can leverage a Loan Against Mutual Funds (LAMF) to fund business operations at 9–12% interest, often cheaper than unsecured business loans charging 12–18%. When used strictly for business purposes, LAMF interest qualifies as a tax-deductible expense under Section 36(1)(iii) of the Income Tax Act, effectively lowering borrowing costs. For instance, a 10% rate in the 30% tax bracket translates to roughly 7% post-tax. Maintain invoices and ledgers linking proceeds to business use, as mixed-purpose loans lose deductibility eligibility.
Tags:
mutual_funds
LAMF
mutual_funds
LAMF
business loans
tax deduction
MSME
Source:
Oct 23, 2025 • 13:27 IST