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Income Tax - Frequently Asked Questions (FAQs) |
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FAQs on ICDS |
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What is the meaning of borrowing cost? |
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Ans. Borrowing cost means interest and other cost incurred by a person in connection with the borrowing of funds. It includes commitment charges, amortised amount of discounts or premiums relating to borrowings, processing charges, charges incurred under the finance lease or any other similar arrangements. The CBDT, vide Circular No. 10/2017, dated 23-3-2017, has clarified that bill discounting charges and other similar charges are also treated as borrowing costs. |
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