Definition of ‘Interest’ under Income Tax

As per S.2(28A) of Income Tax Act, 1961, unless the context otherwise requires, the term “interest” means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised.