Interest on income tax is allowable or not?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 October 2012
Please tel me interest on income tax is allowable for deduction or
not?if allowable then under which section?
not?if allowable then under which section?
18 October 2012
Interst on Income tax can never be allowed as deduction under head PGBP. it is totally disallowed as Income tax is!
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18 October 2012
ANY PAYMENT MADE UNDER INCOME TAX ACT /WEALTH TAX ACT IS NOT ALLOWED AS DEDUCTION IN COMPUTING THE TOTAL INCOME.
Interest for failure to pay advance tax - Interest paid under section 215 for failure to pay advance tax up to statutory percentage would not be allowable as business expenditure - Bharat Commerce & Industries Ltd. v. CIT [1998] 230 ITR 733/98 Taxman 151 (SC).
Interest for late payment of income-tax - Interest paid under section 220(2) for late payment of income-tax is not deductible as revenue expenditure - CIT v. Ashoka Mills Ltd. [1996] 88 Taxman 184/218 ITR 526 (Guj.)/CIT v. Raipur Manufacturing Co. Ltd. [1996] 135 CTR (Guj.) 248.
Interest for delayed filing of return is not deductible - It cannot be said that interest paid for delay in filing the return has any connection with the business of the assessee. If income-tax is not a permissible deduction under section 37, any interest payable for default committed by the assessee in discharging its statutory obligation under the Income-tax Act which is calculated with reference to the tax or income, cannot be allowed as a deduction - Orient General Industries Ltd. v. CIT [1994] 209 ITR 490 (Cal.).
Interest for failure to pay advance tax - Interest paid under section 215 for failure to pay advance tax up to statutory percentage would not be allowable as business expenditure - Bharat Commerce & Industries Ltd. v. CIT [1998] 230 ITR 733/98 Taxman 151 (SC).
Interest for late payment of income-tax - Interest paid under section 220(2) for late payment of income-tax is not deductible as revenue expenditure - CIT v. Ashoka Mills Ltd. [1996] 88 Taxman 184/218 ITR 526 (Guj.)/CIT v. Raipur Manufacturing Co. Ltd. [1996] 135 CTR (Guj.) 248.
Interest for delayed filing of return is not deductible - It cannot be said that interest paid for delay in filing the return has any connection with the business of the assessee. If income-tax is not a permissible deduction under section 37, any interest payable for default committed by the assessee in discharging its statutory obligation under the Income-tax Act which is calculated with reference to the tax or income, cannot be allowed as a deduction - Orient General Industries Ltd. v. CIT [1994] 209 ITR 490 (Cal.).
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Querist : Anonymous
Querist :
Anonymous
(Querist)
18 October 2012
thank you so much for reply
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