Manish (Business Controller) (27 Points)
18 March 2010Can a salaried employee offset interest income from bank which is chargeable to tax under the head " Income from Other Sources" with the intrest he pays on his Car loan.
CA Shiv
(Business Controller)
(2987 Points)
Replied 18 March 2010
Hello,
My Friend, income is not to be set off against expenses. Its the loss which can be set off against the Profits.
So its not possible at all..
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 18 March 2010
Hi manish, such expense is non-deductible in ur case
CA Shiv
(Business Controller)
(2987 Points)
Replied 18 March 2010
Hello,
Its not deductible in any case....
Amir
(Learner)
(4016 Points)
Replied 18 March 2010
Dear Sir,
Income Tax is not about inflows and outflows only...........In fact inflows & outflows should have a nexus for setting off...
Only those expenses can be deducted from an income, which are incurred to earn that income...
So in this case it cannot be said that u had paid the interest on Car Loan for earning the interest on Savings acoount/Fixed deposit.........:)
So not possible.....!
C.Balaji
(Learner)
(1867 Points)
Replied 18 March 2010
Dear Friend.....Amir is rite........
Interest paid on Car loan cannot be adjusted against Bank Interest.........
darshita
(artilce student)
(72 Points)
Replied 18 March 2010
yes manish,
the expalnation given by amir sir is perfect.
darshi
Sharad Suman Das
(art)
(141 Points)
Replied 18 March 2010
Hello Friends,
the Comment of Mr. Amir Seems to BE correct
CA Rahul Khatter
(Chartered accountant)
(97 Points)
Replied 19 March 2010
agree wid amir sir.........
u also apply the matching concept ......
Manish
(Business Controller)
(27 Points)
Replied 19 March 2010
Thanks a lot for to all of you for the prompt response...
CAclubindia
