tax treatment

YES IT IS NORMAL BUSINESS EXPENDITURE AND IT IS ALLWABLE SECTION 36(1) (iii) OF INCOME TAC ACT,1961.

The condition are as under:-

1. The assessee must have borrowed money.

2. The money borrowed must have been used for purpose of business.

3. Interest is paid or payable on such borrowing.

- ca sudhir halakhandi

is the interest on same ovedraft taken for payment of income tax allowable..............plz reply thanks for the earlier one

Yes, it is allowable expenses for the income Tax Act u/s 36 (1).

Interest on O/D for payment of St is allowable whereas on IT it is disallowed.

yes dear this is a normal exp which allowed under sec 36(I)

but all condition must be full fill