CA VIJAYAKUMAR S (a) (107 Points)
18 August 2010Hi Friends
Does the interest paid on Loan Against Deposits (FD - LOD) is deductible from the Interest income on Fixed Deposit under the Head "income from other sources"
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 18 August 2010
HI DEAR,
NO SUCH DEDUCTION WOULD NOT BE ALLOWANBLE UNDER SECTION 57. DEDUCTION WOULD BE AVAILABLE FOR EXPENSES INCURRED FOR EARNING THE INCOME. LOAN TAKEN AGAINST SECURITY OF DEPOSIT IS ALTOGETHER DIFFERENT TRANSACTION AND DOESN'T HAVE ANY RELATION WITH REGARD TO GENERATION OF INCOME I.E INTEREST ON FD. THUS, U CANNOT CLAIM THAT DEDUCTION.
REGARDS,
MANOJ
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