Question

what is the nature of interest on debenture
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Answer 1

Answer:

Interest on debentures is usually payable half-yearly. Interest on debentures is payable even the company suffers a loss or does not earn profit. Interest on debentures is a charge against profits and, therefore, its payment is not subject to the earning of profits.

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Answer 2

Answer:

Interest on debentures is usually payable half-yearly. Interest on debentures is payable even the company suffers a loss or does not earn profit. Interest on debentures is a charge against profits and, therefore, its payment is not subject to the earning of profits.Interest is paid periodically at a predetermined fixed rate on the face value of debentures and is treated as a charge against profits. The company will pay an interest net of tax to the debenture holders as the company is under an obligation to deduct tax at source at the rates applicable as per the tax laws.

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