alleryStart learning →A loan payable of Rs. 100 has repayment with no tax consequences. Its tax base is:
ARs. 10
BRs. 100
CRs. 50
DNil
Answer & Solution
Correct answer: B. Rs. 100
Repayment of principal is neither taxable nor deductible, so the tax base stays at the carrying amount of Rs. 100.
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