Section 6: Computation of chargeable interest.

The Interest-tax Act, 1974Central Act · Act 45 of 1974

(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 [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 [before the 1st day of August, 1974 or [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.

Where this provision sits

Act	The Interest-tax Act, 1974
Section	6
Marginal note	Computation of chargeable interest.
Jurisdiction	Central
Status	In force as published by the source

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

substituted, Act 49 of 1991. . Subs. by Act 49 of 1991, s. 95, for "scheduled banks" (w.e.f. 1-10-1991).
substituted, Act 19 of 1978. . Subs. by Act 19 of 1978, s. 33, for "before the 1st day of August, 1974" (1-4-1978).
substituted, Act 49 of 1991. . Subs. by Act 49 of 1991, s. 95, for "after the 31st day of March, 1985" (w.e.f. 1-10-1991).

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