Interest-Tax Act, 1974

Section - 5 - Scope of chargeable interest

[Scope of chargeable interest.
5.         Subject to the provisions of this Act, the chargeable interest of any previous year of a credit institution shall be the total amount of interest (other than interest on loans and advances made to other credit institutions [or to any co-operative society engaged in carrying on the business of banking], accruing or arising to the credit institution in that previous year :] 
Provided that any interest in relation to categories of bad or doubtful debts referred to in section 43D of the Income-tax Act shall be deemed to accrue or arise to the credit institution in the previous year in which it is credited by the credit institu­tion to its profit and loss account for that year or, as the case may be, in which it is actually received by the credit institu­tion, whichever is earlier.]