I am salaried person and taken loan from my brother. Rs 3 lakh and paid interest 45000 out of which I have pay Rs 4500 as tds on brother PAN
Now in Brothers ITR, brothers get refund of this Amount because his total income is around two lakh.
but what i have to show in MY ITR to reduce my Taxable income from 45000/- which i had paid to my Brothers As interest on loan from brothers. pl advice
06 November 2017
You cannot deduct 45000 in your ITR if your only source of income is salary, interest on loan expenditure can be deducted from business profit if the loan is used for the purpose of Business. It could also have been deducted from Income from Other Sources if loan was used for the purpose of earning that income. Since you are a salaried person, loan cannot be said to have been used for earning salary income. It will be considered as personal expenditure and hence not deductible.
07 November 2017
DEAR SIR, I HAVE SOME INTEREST INCOME OF AROUND 20000 SO I WILL SHOW IN MY ITR INCOME FROM OTHER SOURCES 20000 AND ALSO SHOW INTEREST PAID OF RS 45000 IN WHICH COLOUMN TO GET THE BENEFITS
07 November 2017
PL SUGGEST MAY I SHOW INCOME FROM OTHER SOURCES 20000 AND INTEREST PAID 45000 TOTAL LOSS IS 25000 IN COLUMN OF INCOME FROM OTHER SOURCES NEGATIVE FIGURE
09 November 2017
Yes, But make sure u comply with the provisions of 269ss and 269t i.e. loan should not be accepted or repaid by any mode other than Account Payee Cheque or Account Payee Bank Draft.
09 November 2017
I will take loan from online money transfer Account to Account which show transfer entry in both A/c,s And i will also paid TDS on the amount which I can paid for interest to my Brothers
09 November 2017
TDS provision is not mandatory for you, since in case of Individuals and HUF deduction of TDS is only required if audit was applicable in previous year
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