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Taxation

A company which have not started production but made fixed deposit in banks on which it have received interest as per accounts can the interest earned can be reduced from preliminary and preoperative expensive and For Income tax purpose what is it treatment will it be taxable in the assessment year even there is no business income. If it is taxable under which hear IFOS or Business Income.


sundesh kumar

sundesh kumar

CA Inter

7K+

26-Aug-20 23:32

29

Answers (3)

The deposits made by the company were not in the regular course of business, nor it was the business of the company to make deposits and earn interest. The interest income cannot be said to be attributable to the activities of the company. Thus it shall be included in Income from Other Sources


sudha reddy

sudha reddy

Moderator

27-Aug-20 06:55

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