Interest Deduction on Borrowed Capital: Key Differences Between Section 36(1)(iii) and Section 37 of Income Tax Act.

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....Capitalization of interest u/s.36(1)(iii) - Unlike, section 37 which expressly excludes an expense of a capital nature, section 36(1)(iii) emphasizes is the user of the capital and not the user of the asset which case into existence as a result of borrowed capital....