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Thin Capitalisation — Section 94B
Interest paid to a non-resident associated enterprise is deductible only up to 30% of EBITDA; the excess is disallowed and carried forward.
Indicative. Section 94B applies where interest to (or guaranteed by) a non-resident associated enterprise exceeds ₹1 crore in the year. The deduction is capped at 30% of EBITDA; the excess is disallowed and may be carried forward for up to 8 years. Banks and insurers are excluded. Confirm AE status and EBITDA computation.