Deductibility of interest: conversion into debentures or deferred instruments not treated as actual payment under section 43B. Explanations 3C, 3CA and 3D are amended to provide that interest under the specified clauses converted into a debenture or any other instrument by which ... Summary
Deductibility of interest: conversion into debentures or deferred instruments not treated as actual payment under section 43B.
Explanations 3C, 3CA and 3D are amended to provide that interest under the specified clauses converted into a debenture or any other instrument by which the liability to pay is deferred to a future date shall not be deemed to have been actually paid, aligning this rule with existing provisions treating conversion into a loan, borrowing or advance as not constituting actual payment and applying prospectively from the effective date.
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