banner_ad

Interest paid on I.T. / Interest received on I.T. Refund

This query is : Resolved 
Profile Image

Profile Image

(Querist)
16 July 2011 1. When we pay interest due to delay in payment of Advance Tax or I.T. dues, is the interest paid a deductible expense?

2. When we receive interest paid by I.T. department along with an I.T. refund, is the interest amount a part of taxable income?
Profile Image

CA Navin Jain

Profile Image

CA Navin Jain (Expert)
16 July 2011 1. not delectable as exp

2. interest will be taxable
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
16 July 2011 1. Income tax is not deductible as per section 40(a)(ii) of the Income tax Act,1961. As a corollary interest on such payment also is not a business expenditure.
2. Yes, under section 56(1) of the above referred act,since there is no specific exclusion in the said act.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
01 May 2026
Chartered Accountant

Agrawal Jain & Co.

Raipur

CA

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
27 April 2026
Senior Accountant

Jyoti K agarwal & co

Mumbai

Others

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
04 May 2026
Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details