Hi
Our company has taken land on lease from NOIDA authority and as per lease deed we have to pay land cost in 16 equally half yearly installment, but due to shortage of liquidity company has defaulted in payment to NOIDA authority, authority is charging penal interest on defaulted amount.
My query is as per section 37, it will be disallow?
expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred
Menu
Penal Interest deduction
Replies (3)
Penalty is disallowed not interest.
Penalty and Interest on penalty is disallowed under income tax.
It is allowed inder Income tax law....becoz the said penalty is compensatory in nature
Recent Topics :
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
- FAST DS 2026 MAIL QUERY
- Does Anyone need CA Foundation books of May2026 at
- Last day for ITR-U for AY 2023-2024 (FY 2022-2023)
- Sale of shares in indian company by a non resident
Related Topics :
CAclubindia
