Interest over income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 What will be the treatment as per schedule VI of interest paid under 234B&C.
and under which head this item will be placed.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 November 2013 account for the same in tax expenses only.

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 this is not the treatment because tax expense provision made during the year but it's not possible to made provision for interest on income tax.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 November 2013 i am sorry.

As per Expert Advisory Committee:

Interest payable under section 234B and
section 234C of the Income-tax Act,
1961, should not be considered as a part
of the tax expense. This may, however,
be separately provided for in accor-
dance with the requirements of AS 29

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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26 November 2013 Yes agreed.

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 Dear all expert,

As i have read in icai schedule vi guidlines :-
Interest paid of Income tax is part of Finance cost and shown under Finance cost.

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