Devendra (Chartered Accountant) (4775 Points)
05 October 2011
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 05 October 2011
such interests / bank charges paid is allowed only for business related accounts, not for personal accounts.
Sharad Saini
(Student)
(286 Points)
Replied 06 October 2011
I think that bank charges related to personal A/c are not allowed as they are not for earning intt but for other things/services that banks provides....
Hari Wadhwa
(CA in Practice)
(485 Points)
Replied 06 October 2011
Hi Devendra,
Bank charges are not llowed to be claimed for deduction against the income of Assessee unless he/she is having "Income u/h business or profession". Further, the Bank Account must be used for business or profession.
From the available facts & the term used by you "Saving Bank", it seems that either the assessee does not have income u/h Bus or profession OR the Bank account is not being used in business/profession, thus, the Bank charges are NOT DEDUCTIBLE.
nimish solanki
(IPCC CLEARED)
(108 Points)
Replied 06 October 2011
Hello,
As expense are not incurred to earn income(interest), they won't be allowed
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 06 October 2011
Agree with nimish solanki .....
CA NEERAJ SHARMA
(practice)
(408 Points)
Replied 12 October 2011
thanx Hari For Sharing ur Valueable Knowledge
arjun s
(CA Final)
(299 Points)
Replied 12 October 2011
The bank charges are not related to that bank charges received it should not be deducted as the act says any expenditure not incurred in relation to that income is disallowed
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