Deduction from income tax for interest income now allowed, reducing tax payable by a prescribed rate on average interest. The amendment to First Schedule rule 3(c) replaces the prior non-taxable treatment with a rule entitling the assessee to a deduction from the income tax chargeable on total income, calculated at a fixed rate on the annual average of the amount of such interest, thereby treating the benefit as a deduction against tax liability rather than an exclusion from taxable income.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deduction from income tax for interest income now allowed, reducing tax payable by a prescribed rate on average interest.
The amendment to First Schedule rule 3(c) replaces the prior non-taxable treatment with a rule entitling the assessee to a deduction from the income tax chargeable on total income, calculated at a fixed rate on the annual average of the amount of such interest, thereby treating the benefit as a deduction against tax liability rather than an exclusion from taxable income.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
