Interest on Advance Tax, Income Tax

[JAIPRAKASH RUIA]

Dear Sir,

Whether Interest paid on instalment of advance tax, and self- assessment tax is a finance cost.

Is the same allowed as business expenditure ? What are relevant section and rules ?

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

In my view it will not be allowed as business expenditure.

[JAIPRAKASH RUIA]

But sir, saction 40 (a) (ii) talk only about rates or taxes and as per definition of, Interest u/s 234 A , B C not part of that.

[Ganeshan Kalyani]

It is not a business expenditure.