Dear 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
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.
agreee with above
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
CAclubindia
