Limitation on interest deduction in certain cases.

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..... xpenditure by way of interest or of similar nature exceeding one crore rupees which is deductible in computing income chargeable under the head Profits and gains of business or profession in respect of any debt issued by a nonresident, being an associated enterprise of such borrower, the interest shall not be deductible in computation of income under the said head to the extent that it arises fr .....

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..... preciation and amortisation of the borrower in the previous year or interest paid or payable to associated enterprises for that previous year, whichever is less. (3) Nothing contained in sub-section (1) shall apply to an Indian company or a permanent establishment of a foreign company which is engaged in the business of banking or insurance 3 [ or such class of non-banking financial companies .....

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..... ing the assessment year for which the excess interest expenditure was first computed. (5) For the purposes of this section, the expressions (i) associated enterprise shall have the meaning assigned to it in sub-section (1) and sub-section (2) of section 92A; (ii) debt means any loan, financial instrument, finance lease, financial derivative, or any arrangement that gives rise to int .....

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