Description
Tax Publishers All About Interest Under Income Tax Act And Gst by Dr Avadhesh Ojha and Dr. Nisha Bhandari and FCA Satyadev Purohit
The term 'interest' occurs at many places in the Income Tax Act. Interest as a matter of fact means the amount payable in any manner in respect of any money borrowed or debt incurred and includes any service fee or other charge in respect of money borrowed or debt incurred or in respect of any credit facility which has not been utilised.
Interest may be income as well as an expenditure for an assessee. It is income when a person earns it by making investments and deposits and it is an expenditure when a person takes a loan and pays interest on it. As an income, the interest is chargeable to tax whereas an expenditure it is allowable as deduction. The chargeability as well as allowance of deduction depends on the provisions of the Income Tax Act. Interest income may be chargeable as income from other sources or as income from business or profession. Sometimes interest receipt is of capital nature, hence not chargeable to tax at all. There are various judicial decisions which determine as to when a certain receipt is capital or when it is of revenue nature or when it would be chargeable as business income or when as income from other sources. As far as deductibility of interest as an expenditure is concerned, it may be allowed subject to the fulfilment of conditions provided under sections 36(1)(iii) and 37(1), as the case may be.
Apart from income and expenditure there are several other aspects relevant to interest and fee under the Income Tax Act. Some of them are : various interests, like interest under sections 234A, 234B, 234C, 234D, 201(1A), 220(2), etc., disallowance of interest under sections 40(a), 40A(2) and 43B; TDS on interest; treatment of interest in case of partnership firms, co-operative societies, NRIs, etc., Fee under section 234E and 234F.
The icing on the cake is that the present book also incorporates discussion on GST aspects vis-a-vis interest. Under the GST law, interest received on account of delayed payment of supply is included in value of supply. However, interest received on loans and advances is exempt from levy of GST. Besides, a taxpayer is required to pay interest under various provisions. On the other hand, interest is payble to a taxpayer for delayed payment of refund or other amounts due to him. All the above aspects are discussed in the separate chapters.
The present book thus, covers all the aspects relevant to interest under the Income Tax Act and GST. For this purpose the book is divided in 7 parts. These parts deal with the subject matter of interest in the following manner.
Part I : Interest as Income
Section A : Chargeability and Accrual of Interest Income
Section B : Interest as Income Chargeable to Tax
Part II : Interest as Expenditure
Section A : Deduction of Interest on Capital Borrowed
Section B : Deductibility of Interest Amount Under Section 37(1)
Section C : Disallowance of Interest
Section D : Treatment of Interest in Case of Partnership Firm
Part III : Levy of Interest and Fee for Various Defaults
Section A : Interest for Default in Complying with TDS and TCS Provision
Section B : Penal Interest Under Section 234A, 234B and 234C
Section C : Levy of Fee Under Section 234E and 234F
Section D : Interest for Other Defaults
Part IV : Interest Payable to Assessee
Part V : TDS Vis-a-Vis Interest
Section A : TDS Under Section 193 and 194A
Section B : TDS Vis-a-Vis Interest to Non-Residents
Part VI : Miscellaneous Issues and Ready Referener
Section A : Issues Relevant to Interest
Section B : Ready Referencer
Part VII : Interest and GST
Section A : Overview of GST
Section B : Interst under GST
This is, therefore, a unique book covering almost all ingredients of the subject of interest under the Income Tax Act as well as under GST. We believe that it would be useful for the tax payers, the tax administrators and the tax practitioners.
If there is any amendment via Finance (No. 2) Act, 2019 having impact on the subject matter of the book, the same will be provided on our website.
Though we have tried to make the book error free and of high quality, however, a creative feed back from the users bringing to our notice any mistake, error, omission or discrepancy that might have crept in this book in spite of our sincere efforts, would be highly appreciated.