Whether interst on overdraft taken for payment of sales tax is deductible under the head PGBP?
reply plz.
Dheerej Kumar (None) (121 Points)
02 March 2010Whether interst on overdraft taken for payment of sales tax is deductible under the head PGBP?
reply plz.
Amir
(Learner)
(4016 Points)
Replied 02 March 2010
Dear Dheeraj,
Yes it is deductible subject to Sec 43B i:e on payment basis.......
Brother in one the judgements Court has even allowed interest on OD taken for payment of Dividends......Reasons stated by the court that on account of coomercial expidencies......
Ya, Interest on OD for payment of Income/Wealth tax is not allowed.
Ur case is definately eligible for deduction.
CAclubindia
