Deductibility of foreign exchange entitlement certificate fee under income tax: fee not deductible against interest already earned. The foreign exchange entitlement certificate fee charged under the Exchange Control Law is a statutory levy deducted after interest has been earned on a non resident blocked account and therefore is not an expense incurred for the purpose of making or earning that interest; consequently the fee is not deductible under section 57(iii).
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.
Deductibility of foreign exchange entitlement certificate fee under income tax: fee not deductible against interest already earned.
The foreign exchange entitlement certificate fee charged under the Exchange Control Law is a statutory levy deducted after interest has been earned on a non resident blocked account and therefore is not an expense incurred for the purpose of making or earning that interest; consequently the fee is not deductible under section 57(iii).
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