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Penal interest

Tax queries 293 views 4 replies

Dear Sir/Madam

                         Whether penal Interest levied by the listed bank on the loan borrowed by the company is taxable or not?

Replies (4)
Yes it is...becouse it is income for bank..and allowable expenditure for company

Under which section can we get the deduction?

Rajkumar D,
For a bank it is a normal income.
For a company it is a general expenses. (not specific deduction) , so allowed under general provisions.
Originally posted by : RAJKUMAR D
Dear Sir/Madam

                         Whether penal Interest levied by the listed bank on the loan borrowed by the company is taxable or not?

 


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