Interest - Definition / Legal Terminology - Income Tax

Interest As per clause (28A) of section 2 of the Income-tax Act, 1961 Interest'' means interest payable in any manner in respect of - any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised ; Explanation (a) . -For the purposes of section 94 of the Income tax Act 1961, interest includes a dividend ; As per Section 2(7) of the Interest-tax Act, 1974 interest means interest on loans and advances made in India and includes (a) commitment charges on unutilised portion of any credit sanctioned for being availed of in India; and (b) discount on promissory notes and bills of exchange drawn or made in India, but does not include (i) interest referred to in sub-section (1B) of section 42 of the Reserve Bank of India Act, 1934; (ii) discount on treasury bills;