Deduction of Pymt of Int. agst Int. income earned.

This query is : Resolved

sushil (Querist)
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30 January 2011 Dear Experts,

Ours is a pvt ltd co. directors of our co. have taken loan of rs.2 crore @ 15% p.a. from market.

They have given this rs. 2 crore to our company to invest in company's project.

Company will be paying it on this loan taken from directors @ 12% p.a.

total int paid by director to outsiders form whom he has taken loan say rs.15 lacs. & int earned by director from our company say, rs.12 lacs.

May query is ..
1) int paid on loan taken rs.15 lacs can be allowed as deduction agst int incomes of rs.12 lacs?
2) can rs.3 lacs (minus Rs.3 lcas) be adjusted agst other incomes for from other sources?

Waiting for ur reply..
Thanks in advance,
Regards,
Sushil.

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Guest (Expert)

30 January 2011 Yes interest paid can be set off against the interest income and other incomes from other sources also.

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