https://www.taxtmi.com/caselaws?id=21252 The Rajasthan HC held that payments made by directors to a company in their current accounts, on which the company pays interest, constitute "deposits" under section 40A(8) of the Income Tax Act. The court ruled that the distinction between fixed deposits and current account deposits is merely the fixed term period, which does not exclude current account amounts from being classified as deposits. The HC emphasized that when directors place money in current accounts to earn interest, it constitutes a loan/deposit regardless of withdrawal flexibility. The Tribunal's decision was overturned, favoring the Revenue, and interest paid to directors on current account deposits remains subject to disallowance under section 40A(8). en-us Wed, 11 Mar 1992 00:00:00 +0530 Fri, 20 Jun 2025 13:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21252 The Rajasthan HC held that payments made by directors to a company in their current accounts, on which the company pays interest, constitute "deposits" under section 40A(8) of the Income Tax Act. The court ruled that the distinction between fixed deposits and current account deposits is merely the fixed term period, which does not exclude current account amounts from being classified as deposits. The HC emphasized that when directors place money in current accounts to earn interest, it constitutes a loan/deposit regardless of withdrawal flexibility. The Tribunal's decision was overturned, favoring the Revenue, and interest paid to directors on current account deposits remains subject to disallowance under section 40A(8). Case-Laws Income Tax Wed, 11 Mar 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21252