I want to know whether Interest paid U/s.234A, 234B and 234C on Income Tax and Interest U/s.115WK on FBT is an allowable expenditure under IT Act.
Rgds/Dharmaraju
Pranay Shukla
(CA)
(52 Points)
Replied 10 February 2009
Hi,
As Income tax paid is not allowable expenditure under Income tax Act, on the similar line interest paid u/s. 234 A, 234B & 234 C are just addition to the income tax which is not allowable. The similar fact you can put forward for FBT.
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