https://www.taxtmi.com/article/detailed?id=283 Interest on funds received as advances or deposits in the ordinary course of business and temporarily invested pending utilization is business income where the sums remain linked to the running business and are applied to business purposes; by contrast, interest on advances received in connection with non business disposals of personal capital assets lacks that business nexus. The classification depends on the factual connection between the receipt and an existing business, the use of the interest to reduce contract or project costs, and distinctions from situations involving surplus funds before business commencement or investments from capital or loans. en-us Sun, 08 Feb 2009 00:00:00 +0530 Sun, 08 Feb 2009 10:29:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=283 Interest on funds received as advances or deposits in the ordinary course of business and temporarily invested pending utilization is business income where the sums remain linked to the running business and are applied to business purposes; by contrast, interest on advances received in connection with non business disposals of personal capital assets lacks that business nexus. The classification depends on the factual connection between the receipt and an existing business, the use of the interest to reduce contract or project costs, and distinctions from situations involving surplus funds before business commencement or investments from capital or loans. Articles Income Tax Sun, 08 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=283