income from other source ?? deduction ???
This query is : Resolved
Vijay Parmar
(Querist)
24 June 2010
one assessee having interest income.. he given loan and received the interest income. he also taken loan and pay interest....
the query is can we claim the interest paid on loan as a deduction u/s 57 ????
the loan taken for earn the interest income....
plz clarify DEDUCTION U/S. 57???????
the query is can we claim the interest paid on loan as a deduction u/s 57 ????
the loan taken for earn the interest income....
plz clarify DEDUCTION U/S. 57???????
CA Sanat Pyne
(Expert)
24 June 2010
Yes you are right.
Rahul Gupta
(Expert)
24 June 2010
THE DEDUCTION U/S 57 IS AVAIALABLE ONLY IF THE INTEREST INCOME IS EARNED ON SECURITIES AND IS CHARGED UNDER INCOME FROM OTHER SOURCES.
IN THE GIVEN CASE, INTEREST EARNED IS NOT INTEREST ON SECURITIES, SO DEDUCTION FOR THE INTEREST PAID CANNOT BE CLAIMED AS DEDUCTION U/S 57.
SECTION 57 SAYS THE FOLLOWING >
57. The Income chargeable under the head "Income from other sources" shall be computed after making the following deductions, namely :—
(i) in the case of dividends, other than dividends referred to in section 115-O, or interest on securities, any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend or interest on behalf of the assessee.
IN THE GIVEN CASE, INTEREST EARNED IS NOT INTEREST ON SECURITIES, SO DEDUCTION FOR THE INTEREST PAID CANNOT BE CLAIMED AS DEDUCTION U/S 57.
SECTION 57 SAYS THE FOLLOWING >
57. The Income chargeable under the head "Income from other sources" shall be computed after making the following deductions, namely :—
(i) in the case of dividends, other than dividends referred to in section 115-O, or interest on securities, any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend or interest on behalf of the assessee.
24 June 2010
Agreed with Rahul Ji,
You have to claim interest expense agaisnt interest income only in case if you are showing it as business income.
You have to claim interest expense agaisnt interest income only in case if you are showing it as business income.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- Oct 2025 Invoices
- Import of Software Service.
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- GST on Renting godown to KFCSC for Storage of Raagi
- GST Audit whether Govt Companies are exempt?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
