Urgent - Treatment of Interest

Dear Colleques

We are a property developer. We borrowed Rs 5 crores from the bank as term loan. The term loan was disbursed.Since we did not have any immediate committment for the funds,we placed the same under Fixed Deposit for 45 days. Interest paid on the term loan was capitalised after deducting interest earned. But for Income Tax purpose, my auditor says that the same should be shown seperately. Balance of Income tax should be paid after adjusting the TDS deducted on the interest income.

Is clubbing provision not applicable? Can not we adjust this interest income against our business loss?

Thanks

S.Giri

 

 

 

 

 

Replies (2)
You can adjust the interest income against your business loss.

Please tell me.. its urgent..

Can interest and discount received proir to commencement of production can be adjusted to Pre-production Expenses?

If yes, please tell where it is given?

Accounting standard or guidence note or company's act..

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details