Interest on overdraft taken to pay sales tax

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Sandip Sadhukhan

Student

40 Points Joined August 2014

Dear Sir,

Please clarify my tropic
interest on overdraft taken to pay sales tax- is allowable or not allowable in the calculation of income from business.

Replies (1)

J. K. Ratan

Compliance Advisor

794 Points Joined August 2013

Dear Sir

It's fully allowed as a deduction from Business of Profession Income.

As per section 36 of income tax act 1961, any interest paid for late payment of Sales Tax or late submission of Sales Tax Return are allowed as deduction.

It's not a infringement of Law.