Tax alert: SEBI Introduces key amendments to Related Party Transactions

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Tax alert: Payment for purchase of loan, which includes accrued interest, not liable to TDS

 

15 January 2025

The Mumbai Bench of the Income-tax Appellate Tribunal has held that payment made for acquisition of loan book at book value, comprising of principle value and accrued interest, would not attract withholding tax provisions under section 193/194A of the Income-tax Act, 1961 (ITA), in the absence of moneys borrowed as well as absence of lender-borrower relationship between the two parties.

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