19 July 2016
Hi, My client is a employee of state govt municipal corporation. He has taken loans for personal use from the municipal co-operative bank, and from the proceeds of the loan the bank deducts some amount to be a member to be eligible for loan. And that amount is so called a mix of shares and debt security. The Client receives dividend and interest annually from such security. Also TDS is deducted by bank only from interest component u/s 194A @ 10%. My query is how to treat this dividend and interest for computing total income for A.Y. 2016-17. Also can we deduct the interest component from interest on loan paid during the year or u/s 80TTA? Please advice ASAP
19 July 2016
dividend as well as interest received is taxable...income from other sources. The interest on personal loan can NOT be deducted from this income
CAclubindia
