Reduction of FDR interest from pre-operative expenses

[NAV HIND JAIN]

CAN FDR INTEREST PURCHASED FOR BANK GURANTEE BE REDUCE FROM PREOPERATIVE EXPENSES OF SAME PERIOD.

[Rama Krishana]

The answer to this issue is dependent upon the the decision of nature of FDR. I think the following decision would help to determine your issue: 2008 -TMI - 31404 - RAJASTHAN HIGH COURT

[DEV KUMAR KOTHARI]

see my articles on subject of income during construction period or prior to commencement of business on this website.

AI Summary

Can FDR Interest for Bank Guarantees Be Deducted from Pre-Operative Expenses? Insights from 2008 Rajasthan Decision A discussion on whether Fixed Deposit Receipt (FDR) interest, used for bank guarantees, can be deducted from pre-operative expenses of the same period. One participant suggests that the decision depends on the nature of the FDR and refers to a 2008 Rajasthan High Court decision for guidance. Another participant directs to their articles on income during the construction period or before business commencement for further insights. The forum serves as a platform for knowledge sharing on income tax-related issues.