Interest paid yearly year can allowed

This discussion clarifies the deductibility of interest paid by companies. Interest paid during the current financial year, even if related to earlier years, is generally allowed as an expense in tax computation. However, deductions for interest paid to banks, financial institutions, or NBFCs are only permitted when actually paid, as per Section 43B. Interest paid on government department demands may also be allowed, but interest in the nature of a penalty, or fees, penalties, and cess paid under the Income Tax Act, are not deductible.