Supreme Court gives big relief to telecom companies: Interest waived on income tax dues, companies will save ₹ 3000 crores

Other telecom companies of the country including Airtel and Vodafone-Idea have got a big relief from the Supreme Court. SC has completely waived the interest on the outstanding income tax of these companies. This will save 3000 thousand crores of rupees for the companies. The court gave this decision on 17 May. Vodafone Idea will get the most relief in this. Telecom companies have got relief from the Supreme Court in the matter of tax exemption claim by showing a part of the license fee as revenue expenditure. The Supreme Court said – Companies will not have to pay interest on the amount of less tax paid by showing revenue expenditure. In fact, in its decision of October 2023, the Supreme Court had said that the license fees of these companies should be treated as ‘capital expenditure’ under the Income Tax Act and not as ‘revenue expenditure’. It was only after this decision that the tax liability on income tax companies increased and the interest also increased.

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