Taxability of term deposit interest for an agricultural co.
This query is : Resolved
23 February 2013
HI,
AN AGRICULTURAL CO. HAS INVESTED IN SECURITIES- TERM DEPOSIT ON ITS NAME AND IS RECEIVING INTEREST ON THE SAME. THE CO. HAS ALSO TAKEN LOAN AGAINST THE SAID DEPOSITS AND IS ALSO PAYING ON THE SAME.
WHAT WILL BE THE TAXABILITY OF THE ABOVE SITUATION? WHETHER INTEREST RECEIVED WILL BE TAXABLE OR WHETHER INTEREST PAID CAN BE SET OFF AGAINST THE INTEREST RECEIVED?
AN AGRICULTURAL CO. HAS INVESTED IN SECURITIES- TERM DEPOSIT ON ITS NAME AND IS RECEIVING INTEREST ON THE SAME. THE CO. HAS ALSO TAKEN LOAN AGAINST THE SAID DEPOSITS AND IS ALSO PAYING ON THE SAME.
WHAT WILL BE THE TAXABILITY OF THE ABOVE SITUATION? WHETHER INTEREST RECEIVED WILL BE TAXABLE OR WHETHER INTEREST PAID CAN BE SET OFF AGAINST THE INTEREST RECEIVED?
CA VISHNU GAVKARE
(Expert)
24 February 2013
Yes. Interest received is taxable. To be agriculture income both basic & additional activity needs to be carried. Interest Income is not an agriculture income hence fully taxable. Further interest paid is for the purpose of eraning interest hence will be allowed as deduction.
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
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- MSME disclosure and disallowance
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- 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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
