Treatment of waiver of loan by bank

[Rakesh Bansal]

What should be the treatment of waiver principal and interest of term loan sought by charitable society(registered under section 12A) , keeping in view the provision of section 11(1) of the Income Tax Act, 1961.

AI Summary

Charitable Society's Loan Waiver: Examining Treatment Under Income Tax Act Section 11(1) and Section 12A A query was raised regarding the treatment of a waiver of principal and interest on a term loan sought by a charitable society registered under section 12A of the Income Tax Act, 1961. The discussion focuses on how this waiver should be treated under the provisions of section 11(1) of the Act, which pertains to the income of charitable or religious trusts and institutions.