Industrial Development Bank of India (IDBI) has opted to take tax breaks on core sector loan on the gross income rather than the net income based on various other cases in the past.
Under section 10 (23G) of the income tax act, income from infrastructure assets are exempt from tax. However, there prevails a confusion in this regard whether the gross income from these assets or the net income is tax exempt. Net income would be the income net of the cost of funds for the lender.
The government has not yet issued a clarification in