https://www.taxtmi.com/caselaws?id=72060 Export subsidy paid by the Reserve Bank of India to compensate for shortfall in interest earnings under an export credit scheme was held not to constitute "interest" under section 2(7) of the Interest-tax Act, 1974. The statutory definition applies to interest on loans and advances and related lending transactions; here, no loan or advance was made by the assessee to the Reserve Bank of India, and the receipt was not referable to any lending arrangement. A compensation or subsidy for loss of interest does not become interest merely because it is linked to interest earnings under the scheme. en-us Thu, 03 Jan 2008 00:00:00 +0530 Thu, 15 Mar 2012 16:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=72060 Export subsidy paid by the Reserve Bank of India to compensate for shortfall in interest earnings under an export credit scheme was held not to constitute "interest" under section 2(7) of the Interest-tax Act, 1974. The statutory definition applies to interest on loans and advances and related lending transactions; here, no loan or advance was made by the assessee to the Reserve Bank of India, and the receipt was not referable to any lending arrangement. A compensation or subsidy for loss of interest does not become interest merely because it is linked to interest earnings under the scheme. Case-Laws Income Tax Thu, 03 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=72060