The tax processing for MM contracts would occur as follows:

• First, the Waiver maintenance for Interest Rate/Period/Amount defined at the at the LC product level would be checked. The tax would be fully waived if any one of the following conditions was satisfied.

The Interest rate pertaining to Interest Rate Code defined in the Tax Definition of LC product is more than the contract interest rate for the Basis Amount.

— The total interest amount on which tax has to be computed is less than the minimum interest amount defined in the Tax Definition of LC product. This is also applicable for deposit and borrowing type of products.

• If a Tax category is linked to a Tax Rule and the Waiver parameters have not been defined, then a configurable override would be shown