https://www.taxtmi.com/caselaws?id=360371 Interest on non-performing assets or sticky loans of a co-operative bank is recognised only on receipt basis, because such interest does not amount to real income until actually received. The analysis relies on the real income theory, Accounting Standard 9, RBI income-recognition directions, and section 45Q of the Reserve Bank of India Act, 1934, which prevails over inconsistent recognition treatment. Section 145 of the Income-tax Act does not alter this position for such doubtful interest income. The result is that interest on NPA or sticky loans is taxable only in the year of receipt, not on accrual basis. en-us Wed, 31 Jan 2018 00:00:00 +0530 Fri, 09 Dec 2022 13:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=360371 Interest on non-performing assets or sticky loans of a co-operative bank is recognised only on receipt basis, because such interest does not amount to real income until actually received. The analysis relies on the real income theory, Accounting Standard 9, RBI income-recognition directions, and section 45Q of the Reserve Bank of India Act, 1934, which prevails over inconsistent recognition treatment. Section 145 of the Income-tax Act does not alter this position for such doubtful interest income. The result is that interest on NPA or sticky loans is taxable only in the year of receipt, not on accrual basis. Case-Laws Income Tax Wed, 31 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=360371