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Allowability of deduction

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 November 2011 Sir
A salaried person is earning interest income on loan given to various parties. He is also paying interest on loan taken from various parties.
Can he adjust the amount of interest paid with the interest income. (Under the head income from other sources). Whether it is allowed under Section 57 of Income Tax Act, 1961. Please Quote Case law if any.
If Interest paid is more than interest income, Can he set off the loss incurred under the head other sources from his salary income.
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U S Sharma

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U S Sharma (Expert)
08 November 2011 such business is to be catagorized as money lending business, which is not allowed in general. RBI has put certain restrictions on such transactions.
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