Interest waived

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CA Annie (Querist)
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03 September 2008 What is the disclosure requirement as per Schedule VI of Interest waived by bank on account of One time settlement. Although the interest was provided in books it was not claimed as interest in Income tax. Is the amount taxable?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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03 September 2008 Exceptional item of income, if it is arrears relating to earlier years already provided for in accounts.

CA Annie

CA Annie (Querist)
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03 September 2008 What is the disclosure requirement as per Schedule VI of Interest waived by bank on account of One time settlement. (above the line or below the line?) Although the interest was provided in books it was not claimed as interest in Income tax. Is the amount taxable?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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04 September 2008 I do not understand the stement Although interest was provided in books it was not claimed in assessment. Was it disallowed or added back?

CA Annie

CA Annie (Querist)
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04 September 2008 It was disallowed and not claimed as expense

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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04 September 2008 If it is so then there is no question of offering it, on being waived. Establish a corelation that it is the disallowed interest that was waived.

CA Annie

CA Annie (Querist)
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04 September 2008 Thanx

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