CA.Madhu (Charted Accountant) (204 Points)
16 December 2008Hi,
I am madhu i have a doubt about the interest on overdraft which is credited to the concerned account by bank but not actually paid, before the due date, please specify the case laws if any?
is the over draft is loan as per section 43 B? is it allowed unless it is actually paid to the bank before the due date?
vivek kumar agarwalla
(Article Assistant)
(67 Points)
Replied 16 December 2008
yes indeed overdraft interest if not paid would be disallowed u/s 43B as interest which is converted into loans are also not allowed.I will try to get you the exact provison/case law tommorrow
CAclubindia
