Lawgist6Computation of chargeable interest
(1) Subject to the provisions of sub-section (2), in computing the chargeable interest of a previous year, there shall be allowed from the total amount of interest (other than interest on loans and advances made to 1[credit institutions] accruing or arising to the assessee in the previous year, a deduction in respect of the amount of interest which is established to have become a bad debt during the previous year:
Provided that such interest has been taken into account in computing the chargeable interest of the assessee of an earlier previous year and the amount has been written off as irrecoverable in the accounts of the assessee for the previous year during which it is established to have become a bad debt.
Explanation.--For the removal of doubts, it is hereby declared that in computing the chargeable interest of a previous year, no deduction, other than the deduction specified in this sub-section, shall be allowed from the total amount of interest accruing or arising to the assessee.
(2) In computing the chargeable interest of a previous year, the amount of interest which accrues or arises to the assesse 2[before the 1st day of August, 1974 or 3[during the period commencing on the 1st day of April, 1985 and ending with the 30th day of September, 1991] shall not be taken into account.
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20. Subs. by Act 49 of 1991, s. 95, for "scheduled banks" (w.e.f. 1-10-1991).
2. Subs. by Act 19 of 1978, s. 33, for "before the 1st day of August, 1974" (1-4-1978).
3. Subs. by Act 49 of 1991, s. 95, for "after the 31st day of March, 1985" (w.e.f. 1-10-1991).
- 1 Short title and extent
- 2 Definitions
- 3 Tax authorities
- 4 Charge of tax
- 5 Scope of chargeable interest
- 6 Computation of chargeable interest
- 7 Return of chargeable interest
- 8 Assessment
- 9 Self-assessment
- 10 Interest escaping assessment
- 10A Time limit for completion of assessments and re-assessments
- 11 Advance payment of interest-tax
- 12 Interest for default in furnishing return of chargeable interest
- 12A Interest for default in payment of interest-tax in advance
- 12B Interest for deferment of interest-tax payable in advance
- 13 Penalty for concealment of chargeable interest
- 14 Opportunity of being heard
- 15 Appeals to the Commissioner (Appeals)
- 15A Omitted
- 16 Appeals to Appellate Tribunal
- 17 Rectification of mistakes
- 18 Interest-tax deductible in computing total income under the Income-tax Act
- 19 Revision of order prejudicial to revenue
- 20 Revision of orders by Commissioner
- 21 Application of provisions of Income-tax Act
- 22 Income-tax papers to be available for the purposes of this Act
- 23 Failure to comply with notices
- 24 False statements
- 25 Wilful attempt to evade tax, etc
- 26 Abetment of false returns, etc
- 26A Offences by credit institutions
- 26B Institution of proceedings and composition of offences
- 26C Power of credit institutions to vary certain agreements
- 27 Power to make rules
- 28 Power to exempt
- 29 Power to remove difficulty
- 30 Repealed
