Debt definition clarifies scope of instruments that generate deductible interest and other finance charges under tax law. For purposes of section 94B(5)(ii) of the Income-tax Act, debt includes any loan, financial instrument, finance lease or financial derivative, and any arrangement that gives rise to interest, discounts or other finance charges deductible in computing income under the head 'Profits and gains of business or profession.'
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Debt definition clarifies scope of instruments that generate deductible interest and other finance charges under tax law.
For purposes of section 94B(5)(ii) of the Income-tax Act, debt includes any loan, financial instrument, finance lease or financial derivative, and any arrangement that gives rise to interest, discounts or other finance charges deductible in computing income under the head "Profits and gains of business or profession."
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