10 May 2013
Interest on Cash credit account will be covered under section 43 B or not ? Why ?
My query arised because if bank charges interest on Cash credit then my loan amount increases and my balancing drawing pewer reduces and reduction in balancing drawing power does not mean repayment of interest.
10 May 2013
If the payment is not made in accordance with the terms and conditions of the Loan/CC agreement entered with Bank, then such payment cannot be allowed/or allowed to the extent it is paid during the relevant year u/s. 43B.
any sum payable by the assessee as interest on any [loan or advances] from a scheduled bank in accordance with the terms and conditions of the agreement governing such loan [or advances]