Interest on Advance Tax

[JAIPRAKASH RUIA]

Dear Sir,

Whether Interest paid on instalment of advance tax, and self- assessment tax is a finance cost.

Is the same allowed as business expenditure ? What are relevant section and rules ?

AI Summary

Debate on Whether Interest on Advance Tax and Self-Assessment Tax Qualifies as Business Expenditure Under Sections 234A, 234B, 234C A discussion on a forum addressed whether interest paid on advance tax installments and self-assessment tax can be considered a finance cost and allowed as a business expenditure. Three contributors participated. One stated that such interest is not allowed as a business expenditure. Another pointed out that section 40(a)(ii) pertains only to rates or taxes, suggesting interest under sections 234A, 234B, and 234C is not included. The final contributor concurred that it is not a business expenditure.