Dilip Darji (Auditor) (61 Points)
14 October 2011Dear Sir / Madam
In Pesonal Case
I had Paid a Interest on Unsecured Loan
I had Also Received the Interest Income on Capital Account From Partnership Firm
Can I Claim the Interest Paid on Unsecured Loan Against the Interest Received From Partnership Firm
The Unsecured Loan Obtain was not for the Purpose of Partnershiop Firm
What to Do ?
Please give the advaice
CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 14 October 2011
Dilip, Interset paid will be not be allowed as deduction as it will be considered as personal expenditure , (Drawings).
Moreover, interest from partnership firm will be considered as Business Income.
hitesh
(Telecom Industry)
(169 Points)
Replied 14 October 2011
Interest paid can be set-off agains the interest income u/s 57 only if the interest paid is for the purpose of the consequent interest income.. since nature of interest paid and interest received are different, it cannot be adjusted.. Moreover, i agree with the above view, interest received from partnership is taxable under P/G/B/P, and not covered under Income from Other Sources
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