IncomeTax Questions on Business Deduction tax law and advanced tax law practice cs exam june 2016 case study
Our company had taken a loan fewyears back which got recheduled this year. However the bank has charged us @30% of the sacrifice amount on loan rescheduled.
Please let me know whether thisamount paid could be claimed as business deduction.
The Scheme of Waiver needs to belooked into. If the amount charged is to be adjusted against the principaloutstanding then it is not eligible for deduction.
However, if it is an amount chargedseparately in the nature of processing fee, then there is a possibility ofclaiming deduction, though the Department may take a stand it should standset-off against the amount sacrificed by the Bank.