https://www.taxtmi.com/article/detailed?id=118 Expenses on issuing debentures constitute costs of borrowing and are generally revenue expenditure deductible when incurred, notwithstanding that the debentures may be fully or partly convertible into shares; conversion is a future, often contingent event that does not retroactively change the nature of the original borrowing costs. Immediate or near term conversion can attract scrutiny as potentially disguised share issuance, so issuers should ensure bona fide terms and may amortise expenses over the loan tenure as an alternative accounting approach. en-us Mon, 21 Jul 2008 00:00:00 +0530 Sat, 01 Jan 2011 14:24:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=118 Expenses on issuing debentures constitute costs of borrowing and are generally revenue expenditure deductible when incurred, notwithstanding that the debentures may be fully or partly convertible into shares; conversion is a future, often contingent event that does not retroactively change the nature of the original borrowing costs. Immediate or near term conversion can attract scrutiny as potentially disguised share issuance, so issuers should ensure bona fide terms and may amortise expenses over the loan tenure as an alternative accounting approach. Articles Income Tax Mon, 21 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=118