Interest allowability
Anuradha Sharma (Service) (43 Points)
02 February 2017
Whether interest will be allowed on loan used for acquistion of 100% controlling rights in a company
3 Replies
Sandeep Garg
(Consolidation and IndAS Application)
(1056 Points)
Replied 02 February 2017
yes the interest is allowed in income tax.
Anuradha Sharma
(Service)
(43 Points)
Replied 04 February 2017
will this attract disallowance u/s 14A or 36(1)(iii)
Sandeep Garg
(Consolidation and IndAS Application)
(1056 Points)
Replied 06 February 2017
Section 14A talks about expenses incurred for income not forming part of total income - this is not the case here
Section 36(1)(iii) talks about capitalisation of interest till first put to use. Capitalization of interest shall be taken care in tax books. post first put to use date, interest will be charged to PL.
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