New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    According to the provisions of the MSMED Act, how is the

    treatment of the amount of interest payable or paid by any buyer for the purposes of computation of income under the Income-tax Act, 1961?
    A It is fully deductible Correct Answer Incorrect Answer
    B It is partially deductible Correct Answer Incorrect Answer
    C It is not allowed as a deduction Correct Answer Incorrect Answer
    D It is deductible only with special permission Correct Answer Incorrect Answer

    Solution

    Section 23. Interest not to be allowed as deduction from income: Notwithstanding anything contained in the Income-tax Act, 1961, the amount of interest payable or paid by any buyer, under or in accordance with the provisions of this Act, shall not, for the purposes of computation of income under the Income-tax Act, 1961, be allowed as deduction.

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