An Indian company’s total borrowings are ₹500 crore. What is the minimum amount another enterprise must guarantee to satisfy the association test in section 162(1)(c)?

Section 162(1)(c) of the Income-tax Act, 2025 makes an enterprise associated where it guarantees not less than 10% of the total borrowings of the other enterprise. Ten per cent of ₹500 crore is ₹50 crore, and because the test is ‘not less than’, a guarantee of exactly that amount suffices.