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Financial Benefits To Assessee Can't Be A Ground To Levy Interest Without A Statutory Provision: Bombay High Court

The Bombay High Court has ruled that penalty or interest on additional customs duty and special additional duty of customs, or surcharge, which is not connected to the basic customs duty, cannot be imposed in the absence of an explicit substantive provision. It argued that the Finance Act, 2000 and the Customs Tariff Act, 1975 do not borrow the provisions …

Interest

Interest waiver schemes: Loans against fixed deposits, bonds not eligible

The department of financial services has released a set of frequently asked questions on the interest waiver scheme under which an ex gratia payment of the difference between the simple interest and the compound interest will be given to eligible borrowers. The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest …

Low interest rates don’t make spending risk-free

A negative interest rate–growth differential since the 2008 financial crisis could tempt governments to spend more. In a working paper published by the International Monetary Fund, Lian and others examine trends of interest rates, growth and public debt of 17 advanced economies since 1950. When the interest rate–growth differential is negative, debt-to-GDP ratio is expected to decline, making public debt …

Interest Rates