gowri srinivas (Student CA Final ) (47 Points)
09 April 2014can any one help me in treatment of bank charges in total income statement.....
what the actual case is i have income from other sources(Bank interest of 7826/-) and income from house property(20000*12).... and i hav bank charges of Rs.1124/-. shall i claim bank charges as a deduction in income from Other sources. plz advise me
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 09 April 2014
Dear Gowri you are not allowed to claim bank charges as expenditure out of bank interest and house property income.
gowri srinivas
(Student CA Final )
(47 Points)
Replied 09 April 2014
actually Bank charges incurred for the purpose of savings, through that only bank interest will arises.. so, what i'm saying for deriving bank interest i spent some amount in the form of bank charges.. is it correct or not plz advise me...
gkparmar
(Prop)
(31 Points)
Replied 09 April 2014
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 09 April 2014
as per section 57 (iii) we can calim any expenditure incurred wholly and exclusively earning that income.
hence in that case you can claim bank charges as expenditure but it is strongly recommended that take benefit only when you can prove the same
Ankit Somani
(CA CS)
(144 Points)
Replied 09 April 2014
Only such expenses is deductible if used for earning income. You can claim Bank charges against Income only against which you have incurred the same as per Sec 57
Rahul jain
(LEARNING & TEACHING)
(435 Points)
Replied 09 April 2014
u can 100% claim ur bank charges against ur int. income.....
Vivek Khakhkhar
(Assistant Audit Manager)
(201 Points)
Replied 10 April 2014
As per section 57 Iiii) of other sources, expenditure must not be in the nature of personal. So expenditure should bear a character which has connection with income. else it is not deductible.
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