Can expenses of society be deducted from interest income of

This query is : Resolved

abdulqadir (Querist)
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28 November 2016 In my society maintaianace charges are collected less beause there is income from from fds and still society is running in loss
Please suggest can it be claimed as deduction from interest income in incometax return

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 November 2016 Expenses can't be claimed on interest income.

abdulqadir

abdulqadir (Querist)
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29 November 2016 please can you explain why it cannot be claimed
as due to interest component
maintainance of the society is descreased and that fund is used for expenditure of society

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 November 2016 Maintenance charges collected from the members is a non taxable income to the society. The expenses are incurred against this collection.
The interest earned by the society is a taxable income of the society, for earning this interest no expenditure incurred by the society, hence no expenditure will be allowed on interest income.

abdulqadir

abdulqadir (Querist)
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29 November 2016 thank you sir for the reply

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