incometax liability

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jaigurudev (Querist)
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16 July 2009 my income from salary 50000+int. received from parties for unsecured loan 185000-loss from shares as shortterm capital loss35000-int. paid for money taken for lending to others as loan 50000.please advice me i have to pay tax and how much.
will my officer dis allow as int.paid
with thanks

Abhishek Mohta

Abhishek Mohta (Expert)
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16 July 2009 Short Term Capital Losses can be adjusted against Capital Gains only so no adjustment for the same. Now as per your case it seems that you are in a business of taking and lending loan. If it is so then the same will be charged under the head business and profession and against the income of Rs. 1,85,000/- you will get the deduction of the expenses i.e. interest paid Rs. 50,000/-.

If you are not involved in the aforesaid business then the same will be charged under the head Income from other sources and in this case also you will get the benefit of Rs. 50,000/- paid by you coz as per the I.T. Act any expense incurred in earning income from other sources shall be allowed as deduction from the income so earned.

So in either case your taxable income would be Rs. 1,85,000/- and short term capital losses of Rs. 35,000/- will be carried forward to the next year.

Being individual you have to pay tax as follows:

Tax: 2500
Ed. Cess: 75
Total Tax: 2575