Treatment of interest paid

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Querist : Anonymous

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Querist : Anonymous (Querist)
23 November 2016 A Company made investment in shares of foreign company. As a result of investment, foreign company became subsidiary. Source of investment was loan taken by indian company.

Please advise how to deal with interest paid by indian company whether it will be added back in computation or allowed as interest expense.

23 November 2016 Allowed as interest expense. Tax payable on income from such investment.

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Querist : Anonymous

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Querist : Anonymous (Querist)
23 November 2016 No income is being earned. Whether interest will be allowed.

23 November 2016 Yes it will be allowed. Dividend and capital gain will arise in future which will be taxed in the year of receipt.


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