I have a overdraft account in my personal name. Will the intrest charged in this overdraft account is deductible from my income from the legal profession as I file an ITR4 for my professional income.
Nishant (Student) (27 Points)
21 May 2015I have a overdraft account in my personal name. Will the intrest charged in this overdraft account is deductible from my income from the legal profession as I file an ITR4 for my professional income.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 21 May 2015
If such OD is for solely for professional purpose then u can claim entire interest as deduction else on proportionate basis.
Sudhanshu
(article)
(62 Points)
Replied 23 May 2015
yes you can claim the interest part as expense if it is for profession u/s 37.
As per sec. 37 three conditions requires to satisfie:
1. it is for business/ profession.
2. it is not in nature of capital &
3. not in nature of personal.
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