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SET OFF OF INTEREST

Arvind (Article) (150 Points)

26 March 2009

1)I am in receipt of post office monthly income under MIS scheme(Which was earlier exempt under 80L but now taxable) and simultaneously I am paying interest on loan which I took for investing in MIS scheme .so can I set off that interest paid with interest received from post office.

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4 Replies

SATYENDRA KR. GUPTA (C.A.FINAL) (242 Points)
Replied 26 March 2009

Dear Arvind,

As per I.Tax Act,1961,you can adjust the Interest paid with interest earned income, net amount is taxable under the head of other sources.

Thanks

Jai Ho

S.K.GUPTA

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Atul Kumar (CA) (504 Points)
Replied 24 April 2009

You can.

Rupesh Jha (M.Com CA PhD* and MBA*) (1116 Points)
Replied 24 April 2009

YES SATYENDRA IS RIGHT.

vijay (.) (212 Points)
Replied 26 April 2009

Hi Mr. Arvind,

The interest income under MIS scheme is taxable under section 56 and you can claim the deduction of the interest on loan borowwed for investing money in MIS scheme under section 57.

I hope you will find this information useful.

Regards

Vijay Kumar