Correct head of income - interest income earned out of deposits ...

Interest Income from Fixed Deposits Linked to Business Operations Must Be Classified Under Business Income Head.

February 4, 2022

Case Laws Income Tax HC

Correct head of income - interest income earned out of deposits made from the business funds including borrowed funds in the course of running the business of the appellant - The conversion of a portion of the sale proceeds as Fixed Deposits was done by the bank themselves and not on the volition of the assessee.Therefore, we are fully convinced that the transaction was connected and closely linked with the assessee's business activity - HC

View Source

← Previous Next →

Correct head of income - interest income earned out of deposits ...

Interest Income from Fixed Deposits Linked to Business Operations Must Be Classified Under Business Income Head.

February 4, 2022

Case Laws Income Tax HC

You may also like:

Correct head of taxability of interest income - business income or income from other sources - the assessee firm had availed overdraft facility from the bank against the...

Characterization of income - Determine the nature of interest income earned - mere fact that the deposits were linked with projects would not alter the character of the...

Chargebility of interest income - In view of the terms of contract, the fixed deposit and earning of interest on such fixed deposit was intricately connected with the...

Interest income earned from fixed deposits created as margin for availing business loans was rightly treated as business income and netted off against interest...

Taxability of interest of income on fixed deposits - The assessee had made fixed deposits with banks and derived interest income thereon only to recover the interest...

Set off of brought forward business loss against income from other sources - As provision of section 72 are very clear that brought forward business loss can only be set...

Taxability of interest income - ‘Interest on bank deposits, inter-corporate deposits, debentures, from sister concerns and ‘other interest - the surplus money, unless...

Addition made on account of interest on fixed deposits - the business nexus is clearly proved. Under these circumstances, the interest income earned on fixed deposits...

Cash seized during investigation cannot be appropriated towards pre-deposits u/s 35FF of Central Excise Act or Section 129EE of Customs Act as a condition for filing...

Correct head of income - interest income on FD - Income From Other Sources v/s income from business - The said interest income has been earned by the assessee in the...

Additions against fixed deposit in the name of family members and interest income - Admittedly, the amount of fixed deposit in the name of family members can adequately...

Deduction u/s 80-IC - Interest on Fixed Deposits (FD) - in order to avail overdraft facility, the bank mandated pledge of fixed deposits - interest earned out of the...

Taxability of interest income from short term fixed deposits - funds were deposit in the bank for a short period for the purpose of utilizing the same in the project and...

Interest income earned from funds received from Government for setting up a company is a capital receipt, not revenue receipt, as the funds and income must be utilized...

Interest income on fixed deposits received - AO has rightly treated the interest received during the construction period from the money parked as fixed deposits and...

Quick Updates: