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Asked by Arpit on :Jan. 31, 2018

Will judgement of Vasisth Chay Vyapar be made app…

Will judgement of Vasisth Chay Vyapar be made applicable on banking companies also?

Will judgement of Vasisth Chay Vyapar be made applicable on banking companies also?

0

Kanishka Jan. 31, 2018

Yupe it will squarely apply. The crux of judgement is,

The apex court ruling is a big relief for all NBFC's as well as banking companies....Once the borrower becomes NPA, there arises doubt regarding recovery of principle amount...In such scenario, levying tax on accrued interest on such NPA account totally becomes irrelevant.

Thus interest on NPA accounts will be taxable on receipt basis and not on accrual basis.

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