16 June 2010
I have paid interest to bank on my Overdraft against deposits pledged with Bank. Can I claim this as a deduction while computing interest income (i.e. Interest on depsits received Less Interest paid on Overdraft)? My other incomes are Salary,Capital gains etc..
16 June 2010
No interest paid to bank on overdrafts is allowed as deduction only in case it is a business or profession expenditure. It is not allowed in case of salary and capital gains or other income.
16 June 2010
As per supreme court decision in CIT Vs. Dr. V.P. Gopinathan (2001) 248 ITR 449(SC) such set off is not permitted if interest income is offered under the head " Income from other sources".
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