Whether salary income can be reduced by int paid on unsecured loan?
17 Replies
CA SUDHAKAR
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 19 November 2009
No deduction are allowable from Salary income. Interest paid on unsecured loan is nothing to do with your income from Salary. Even loss from business can not be set off with income from Salary.
Chandranath Banerjee
(Cost Accountant & Company Secretary)
(235 Points)
Replied 19 November 2009
salary income has no relevance with interest paid on unsecured loan
Kashyap Joshi
(Proprietor )
(260 Points)
Replied 20 November 2009
no dude, its not allowed since payment of interest on loan is only an application of income and has not got to do anything with salary
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 20 November 2009
Dear Mohan,
There are no provisions in Chapter IV-A i.e section 17,18 and 19 of I T Act for allowance/deductibility of interest paid on unsecured loan.
However, it is to be noted that, in case un secured loan is taken for purchase of House property then;
In case property is let out you may claim such interest as an expenses for determining the Income from house property.
In case property is self occupied you can charge such interest in the Income head of House property i.e. you can claim loss under House property and such loss can be allowed to offset against income from salary.
Regards
Juzer
CA Parth Shah
(Chartered Accountant)
(369 Points)
Replied 20 November 2009
No...It is allowable only under PGBP.
ca tarun sharma
(SERVICE)
(277 Points)
Replied 20 November 2009
| Originally posted by :Juzer | ||
| " | Dear Mohan, There are no provisions in Chapter IV-A i.e section 17,18 and 19 of I T Act for allowance/deductibility of interest paid on unsecured loan. However, it is to be noted that, in case un secured loan is taken for purchase of House property then; In case property is let out you may claim such interest as an expenses for determining the Income from house property. In case property is self occupied you can charge such interest in the Income head of House property i.e. you can claim loss under House property and such loss can be allowed to offset against income from salary. Regards Juzer |
" |
100 % agree with juzer
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
