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Deduction of interest under section 57

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(Querist)
01 January 2014 Person borowed money form bank and give its futher to company to earned interest income

TOtal interest Received 50.00 lacs
Total Interest paid to Bank 52.00 lacs

My question is whether he is eligible for deduction of Rs 50 lacs or 52 lacs under section 57
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CA.Sourabh Sethia

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CA.Sourabh Sethia (Expert)
01 January 2014 but how can one take loan from bank for further Loan to company

he is eligible for 52 Lacs if he has actually paid the interest & money lending is his business
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Nikhil Kaushik

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Nikhil Kaushik (Expert)
02 January 2014 agreed with Sethia. The relevant clause is the purpose of loan as stated by the bank at the time of sanction of loan.




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