income from other source ?? deduction ???
This query is : Resolved
24 June 2010
one assessee having interest income.. he given loan and received the interest income. he also taken loan and pay interest....
the query is can we claim the interest paid on loan as a deduction u/s 57 ????
the loan taken for earn the interest income....
plz clarify DEDUCTION U/S. 57???????
the query is can we claim the interest paid on loan as a deduction u/s 57 ????
the loan taken for earn the interest income....
plz clarify DEDUCTION U/S. 57???????
24 June 2010
Yes you are right.
24 June 2010
THE DEDUCTION U/S 57 IS AVAIALABLE ONLY IF THE INTEREST INCOME IS EARNED ON SECURITIES AND IS CHARGED UNDER INCOME FROM OTHER SOURCES.
IN THE GIVEN CASE, INTEREST EARNED IS NOT INTEREST ON SECURITIES, SO DEDUCTION FOR THE INTEREST PAID CANNOT BE CLAIMED AS DEDUCTION U/S 57.
SECTION 57 SAYS THE FOLLOWING >
57. The Income chargeable under the head "Income from other sources" shall be computed after making the following deductions, namely :—
(i) in the case of dividends, other than dividends referred to in section 115-O, or interest on securities, any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend or interest on behalf of the assessee.
IN THE GIVEN CASE, INTEREST EARNED IS NOT INTEREST ON SECURITIES, SO DEDUCTION FOR THE INTEREST PAID CANNOT BE CLAIMED AS DEDUCTION U/S 57.
SECTION 57 SAYS THE FOLLOWING >
57. The Income chargeable under the head "Income from other sources" shall be computed after making the following deductions, namely :—
(i) in the case of dividends, other than dividends referred to in section 115-O, or interest on securities, any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend or interest on behalf of the assessee.
24 June 2010
Agreed with Rahul Ji,
You have to claim interest expense agaisnt interest income only in case if you are showing it as business income.
You have to claim interest expense agaisnt interest income only in case if you are showing it as business income.
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