Deeming of borrowed funds as income where negotiable instruments or hundis are used, altering tax treatment on borrowing and repayment. Amounts borrowed or repaid through negotiable instruments (other than account payee cheques), hundis, or modes specified by the Board, including interest, ... Summary
Deeming of borrowed funds as income where negotiable instruments or hundis are used, altering tax treatment on borrowing and repayment.
Amounts borrowed or repaid through negotiable instruments (other than account payee cheques), hundis, or modes specified by the Board, including interest, are deemed to be the income of the person borrowing or repaying for the tax year in which the transaction occurs. If an amount has been deemed income when borrowed, that amount shall not be assessed again on repayment.
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