Can interest income be set off against interest paid
This query is : Resolved
23 May 2009
I am a salaried person and have taken home loan for a property under construction. So, I'm aware that I can not avail sec 24 benfit right now.
However, I have some inerest income. Can I set off my interest expense on home loan against my interest income.
Please advise. It would be great if you could also mention any similar case ruling.
However, I have some inerest income. Can I set off my interest expense on home loan against my interest income.
Please advise. It would be great if you could also mention any similar case ruling.
23 May 2009
No you cannot do that, since the interest payable by you can be cliamed deduction under the head house property, where as the interest income received by you is taxable under the head other sources, even the interest received and paid also falls in same section, such set off is not permissable.
23 May 2009
Interest set off is not allowed in CIT Vs.Dr. V.P.Gopinathan (2001) 248 ITR 449(SC)
Late CA Sampat Jain
(Expert)
23 May 2009
Interest expenditure incurred to earn interest income is allowable as expenditure against gross interes
CA Nitin Wadhwani
(Expert)
23 May 2009
Also, you can take the deduction of Principal paid u/s 80C.
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