There may also be Interest Levy on the tax underpayment resulting from the interest expense disallowance made by the tax authorities under the thin capitalization rules.
The new system should target the detrimental effects of moneylending by freeing borrowers from high interest rates and any pressures or legal requirements to repay loans.
According to the current theory,time is considered as the major variable while interest rate has been supposed as constant which,however is uncomplying with the realistic society economy system.
Actual experience shows that on the average the price of wheat and other nonperishable crops remains the same all year round except for an allowance for storage, interest and insurance charges.
It is a labor to task the faculties of a man — such problems of profit and loss, of interest, of tare and tret,(8) and gauging of all kinds in it, as demand a universal knowledge.