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Deduction from other sources income

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Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 Experts,

Is interest expense allowed as a deduction from income from other sources.

Example,
There is income of interest on FDR and at the same time there is expense of interest on OD.
Now my question is, is interest expense of OD deductible from interest income of FDR ??

If answer is yes, then how to show the same in ITR ??

Thanks.

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 July 2014 only if you can establish that OD was taken to deposit the money for FD.

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2014 Thanks Nikhil.

Can you please let me know how to show the same in ITR.

Should the interest on FDR be reduced by the amount of interest paid on FD, and net amount to be shown in ITR.

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 July 2014 as I said before, you need to first establish that OD was taken to invest in a FD. Can you prove that? given FD interest is generally lower than OD interest?

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