Interest payment in case of debentures issued by a company is which of the following?

Transferred to general reserve Charged as appropriation of profit of the company Charged against the company's profit Paid in lieu of dividend

Charged against the company's profit

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. The amount so deducted must be paid to the Central Government on behalf of the debenture-holders.