In the excess-interest computation under section 177(4), what percentage of EBITDA is used as the benchmark?

Section 177(4) of the Income-tax Act, 2025 defines excess interest as the interest paid or payable in excess of 30% of earnings before interest, taxes, depreciation and amortisation, or the interest paid or payable to associated enterprises, whichever is less. The limit applies only where such interest to a non-resident associated enterprise exceeds ₹1 crore in the tax year.