Section 57(iii) of income tax act 1961

VIJAY MALIK (40 Points)

04 August 2019  
Related to section 56 and 57 of income tax act.

1st year = If A takes a loan(Loan against Plot) of 40 lakh and lend the same to B at some interest rate. In ITR of this year A shows interest income from B under income from other sources and deduct EMI interest(loan against plot).

2nd year : In this year A pays EMI of the loan(principal+interest) by taking another loan from C . In this year what should A take the deduction in respect of interest expenses

Please tell the solution keeping in mind section 57(iii) of IT Act , 1961