Tax alert: Interest on FDs, made from funds received for setting up of power plant, not taxable as IFOS has been saved
Article
Tax alert: Interest on FDs, made from funds received for setting up of power plant, not taxable as IFOS
8 August 2024
The Delhi High Court, based on facts, has rendered its decision that interest earned on fixed deposits made from funds received for setting up of power plant is to be treated as capital receipt and is not taxable as ‘Income from Other Sources’, since such funds are inextricably linked with setting up a power transmission system.
