Disallowance under section 14a
This query is : Resolved
24 January 2013
If amount is invested in investment from which exempt income will be genereated, on 1st Day of January, then for calculation of disallowance of interest expense, whether i should consider interest expense for whole year or interest expense incurred only after 1st Day of January i.e. only for 3 months
24 January 2013
If ITO invokes Rule 8D-
whole years interest is also considered under the computational framework.
.
If you want to remain safe, earmark the borrowed money, which has exclusively been utilised for such investment and do not claim that part of interest as an expense.
.
Suppose you have invested Rs 5.00 lacs in January 2013, but borrowed that interest bearing fund in Nov 12. Exclude the entire interest from Nov 12 to March 13.
.
whole years interest is also considered under the computational framework.
.
If you want to remain safe, earmark the borrowed money, which has exclusively been utilised for such investment and do not claim that part of interest as an expense.
.
Suppose you have invested Rs 5.00 lacs in January 2013, but borrowed that interest bearing fund in Nov 12. Exclude the entire interest from Nov 12 to March 13.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Fixe term employment
- Is any professional CA is here please reply
- Reopen of assessment proceeding
- Foreign lottery ticket bought online from India: legality, tax and consequences
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Experts need help
- Putting a heading on received mail
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
