https://www.taxtmi.com/forum/issue?id=3614 Under Section 14A read with Rule 8D, where interest is not directly linked to exempt income the disallowance equals interest multiplied by the ratio of average investment to average total assets, plus a separate small investment-linked balancing charge. If there is no opening investment balance because acquisition occurred during the year, treat opening investment as nil; compute average investment as (0 + closing balance)/2 and apply that average in both the interest apportionment formula and the balancing charge calculation. en-us Thu, 01 Dec 2011 20:32:32 +0530 Thu, 23 Jan 2025 15:58:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3614 Under Section 14A read with Rule 8D, where interest is not directly linked to exempt income the disallowance equals interest multiplied by the ratio of average investment to average total assets, plus a separate small investment-linked balancing charge. If there is no opening investment balance because acquisition occurred during the year, treat opening investment as nil; compute average investment as (0 + closing balance)/2 and apply that average in both the interest apportionment formula and the balancing charge calculation. Discussion-Forum Income Tax Thu, 01 Dec 2011 20:32:32 +0530 https://www.taxtmi.com/forum/issue?id=3614