Interest Income Tied to Plant Setup Deemed Capital, Not Taxable Income, u/s 56 of Income Tax Act.

Interest Income Tied to Plant Setup Deemed Capital, Not Taxable Income, u/s 56 of Income Tax Act. https://www.taxtmi.com/highlights?id=41289 Interest income - tax-ability u/s 56 - If the assessee company receives any amount which is inextricably linked with the process of setting up its plant and machinery, such receipts will go to reduce the cost of its assets. Hence such receipts are capital in nature and cannot be taxed as income under income from other sources. en-us Fri, 07 Sep 2018 12:44:34 +0530 Fri, 07 Sep 2018 12:44:34 +0530 TaxTMI RSS Generator Interest Income Tied to Plant Setup Deemed Capital, Not Taxable Income, u/s 56 of Income Tax Act. https://www.taxtmi.com/highlights?id=41289 Interest income - tax-ability u/s 56 - If the assessee company receives any amount which is inextricably linked with the process of setting up its plant and machinery, such receipts will go to reduce the cost of its assets. Hence such receipts are capital in nature and cannot be taxed as income under income from other sources. Highlights Income Tax Fri, 07 Sep 2018 12:44:34 +0530 https://www.taxtmi.com/highlights?id=41289