Dear Sir/Madam,
One Section 25 Company made a fixed deposit in a bank and earn interest on that deposit now my qustion is that is they require to pay income tax on that income or not If Yes, under which section or If not, then why.......
Please clarify......
Thanks in advance.........
Nikhil Kalra
CS Final Year Student
Dear Nikhil
Section 25 Company can claim deduction under section 80G of income tax, Act 1961.Please refer to that section for this.
Dear Smriti,
I dont understand your answer my question is not about claiming the deduction i just want to know weather section 25 company have to pay income tax on income earn by making fixed deposit or not.
Further, our section 25 company is not registered under section 80G of income tax act, 1961.
Section 25 Company is regarded as a ‘company’ within the meaning of the Income Tax Act, 1961 and as such its income is taxable according to the applicable rates similar to those applying to other companies.
CAclubindia
