19 March 2017
I availed a loan of Rs.4.50 lacs against FDR of Rs.5.00 lacs in Feb, 2014 to make final payment of about Rs.6.00 lacs towards purchase of a flat in Greater NOIDA. The flat was sold in in Nov, 2014 for Rs.39.00 lacs, but the loan was not adjusted, as Rs.33.00 lacs was reinvested in booking of Studio Appt in Greater NOIDA itself and remaining funds were used in renovation of my house. Investment in Studio Appt generated income of Rs.3.72 lacs in FY 2015-16 along with interest income of Rs.0.62 lacs on FDR, while I paid interest of Rs.0.55 lacs on FDR loan. Please advise, whether loan interest of Rs.0.55 lacs can be deducted from,
i) Interest income of Rs.0.62 lacs, as interest expenditure was incurred to save the interest income. ii) Income of Rs.3.72 lacs, generated from investment as the loan proceeds were invested therein.
22 March 2017
I just could get reply to my query submitted 3 days ago. E-MAIL, sent as reply, did not contain any reply. As click here to view reply did not provide any thing. On downward scroll, similar situations also had no such issue. The query has been marked as resolved. It appeared to be wastage of crucial time for me. Sorry for this state of affair. If you required some fees, you could have said so.
CAclubindia
