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TOTAL INCOME

11 January 2021

Mr Gopal Chouhan aged 61 years received dividend of 1200000 rupees from Tesla limited in previous year 2020 21. Interest on loan taken for the purpose of investment in Tesla limited is 300000 rupees income included in the hands of Mr Gopal for previous year 2020 21 would be?

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5 Replies

Gopal Chouhan (31 Points)
Replied 11 January 2021

960000 ok

4 Like

ayusmita (Tax consultant) (5890 Points)
Replied 12 January 2021

How???

Krishna Chaudhary (Accountant) (4531 Points)
Replied 12 January 2021

Gopal Chauhan
10 lakh will be exempted under section 10(34 )and remaining 200000 will be charged under section 115 BBDA.

3 Like

Rahul Kumar (30 Points)
Replied 12 January 2021

Please clarify

1 Like

Krishna Chaudhary (Accountant) (4531 Points)
Replied 12 January 2021

Mr Gopal you are right.
As per the amended section 57 of the Income Tax Act, 1961 ('Act'), interest expense incurred for the purpose of earning the dividend income would be allowed as a deduction up to a maximum of 20% of such income
So answer will be 960000

3 Like