Adjustment of interest on recurring deposit with banks

Interest received on savings, deposit accounts are chargable to tax under the head icome from other sources as saving a/c and deposits a/cs are a type of investment of surplus funds. If you receive interest from the business of lending then interest received from such lending business is chargeable to tax under the head PGBP and interest paid on borrowings can be claimed as expense.

Even now if you use your borrow funds for your business, you can claim interest expense as deduction.