https://www.taxtmi.com/caselaws?id=6400 Under section 9(1)(iv) of the Indian Income-tax Act, 1922, the deductible amount is confined to interest payable on the original mortgage, charge or borrowed capital. Where unpaid interest is capitalised under the contract and further interest is charged on that accumulated amount, the additional sum is treated as interest on interest, not interest on the capital charge itself. Compound interest therefore falls outside the statutory allowance, and only simple interest at the contractual rate is deductible. en-us Mon, 05 Mar 1973 00:00:00 +0530 Tue, 24 Jun 2014 15:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6400 Under section 9(1)(iv) of the Indian Income-tax Act, 1922, the deductible amount is confined to interest payable on the original mortgage, charge or borrowed capital. Where unpaid interest is capitalised under the contract and further interest is charged on that accumulated amount, the additional sum is treated as interest on interest, not interest on the capital charge itself. Compound interest therefore falls outside the statutory allowance, and only simple interest at the contractual rate is deductible. Case-Laws Income Tax Mon, 05 Mar 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6400