Waiver of loan liability is not taxable
Global Tax Update : June 2018 / India
The Supreme Court of India in one of its judgement has held that waiver of loan, used for acquisition of capital assets, by the creditors does not result in either any benefit arising from business or profession or cessation of trading liability in the hands of the debtor. Therefore, it held that, based on the facts of the case, such receipt in the hands of the debtor is not taxable.
This newsletter explains the following topics;
- Waiver of loan liability is not taxable
- Discounts are tax deductible
- Transfer of a capital asset to a step-down wholly-owned subsidiary not taxable
- Investment by Foreign Portfolio Investors (FPI) in Debt
* This Article is based on the relevant Japanese or specific country’s tax law and other authorities in effect on the date of this Article. This Article would not be guaranteed updating if there are any changes in Japanese tax law, any other law, or interpretations by the courts or tax authorities thereof after the date of this Article.