can we set off with salary income with interest (paid) loss?

This query is : Resolved

LALIT VYAS (Querist)
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26 March 2011 Mr. X borrowed Rs. 40,00,000 from bank and agree to pay interest and he invested the money in a company as capital contribution. He has paid Rs.4,80,000.00 as interest during FY: 2009-2010, and has not received any interest on capital from the company, but Rs. 2,00,000.00 as remuneration. Is the interest of Rs.4,80,000.00 can be set off against the salary income ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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26 March 2011 Interest cannot be set off against Salary income

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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26 March 2011 Hi,

There is Provision in the Income Tax Act 1961 for such a set off, therefore its not possible.

Regards

CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

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