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Income Tax - Highlights / Catch Notes

Home Highlights August 2019 Year 2019 This

Allowability of interest on Compulsorily Convertible Debentures ...

Income Tax

August 12, 2019

Allowability of interest on Compulsorily Convertible Debentures (CCDs) for period before conversion - RBI policy of FDI is governed by future repayment obligation and CCDs does not have any repayment obligation, hence considered by RBI as equity for FDI policy - CCDs holder neither eligible to voting nor dividend till its conversion hence CCDs are to be considered as Debt only and interest is allowable u/s 36 (1)(iii)

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