(7)[ "interest" means interest on loans and advances made in India and includes-(a)commitment charges on unutilised portion of any credit sanctioned for being availed of in India; and(b)discount on promissory notes and bills of exchange drawn or made in, India, but does not include-(i)interest referred to in sub-section (1B) of the Reserve Bank of India Act, 1934;(ii)discount on treasury bills;]---Subject to the provisions of this Act, the chargeable interest any previous year of a credit institution shall be the total amount of interest (other than interest on loans and advances made to other credit institutions [or to any cooperative society engaged in carrying on the business of banking] [Omitted & Inserted by Act 18 of 1992, Section 103 (w.e.f. 1.4.1993)]Provided that any interest in relation to categories of had or doubtful debts referred to in section 43D of the Income-tax Act shall be deemed to accrue or arise to the credit institution in the previous year in which it is credited by the credit institution to its profit and loss account for that year or, as the case may be, in which it is actually received by the credit institution, whichever is earlier.]
