I am a salaried person.
I am getting an interest of Rs 7,500/- for the year from my NSC.
I have on the other hand also taken a loan from a friend against which I paid him an interest of Rs. 8,000/-
All payments & repayments including interest were by cheques.
My query is that can i adjust the interest recived from the interest paid while filing my return or I will have to pay the tax on Rs. 7,500 earned as interest ?
Part 2: If I do not have to pay tax on the same, Should I show the Interest earned as 7,500 in other Gross Interest Income in ITR2 & then show 8,000/- as the expenses under Section 57?
Thanks for advising