TAXABILITY OF INTEREST RECEIVED BY A MSME COMPANY ON ACCOUNT OF DELAYED PAYMENTS BY BUYER

K L Narasimham (CHARTERED ACCOUNTANTS) (54 Points)

19 March 2025  

A pvt ltd company was awarded substantion amount of interest by MSME council and accordingly the buyer has paid interest after deducting TDS @ 10%.  Client Company argues that this amount of interest received is not taxable.  Pl englighten whether such interest received on account of delayed payments forms part of  taxable income or not.