Interest expense ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2013 Interest expense allowable as deduction in Income tax ?

I have borrowed capital and I pay interest on it in the same way I have lended money which I show as Income can I get deduction or can claim expense on interest ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

26 June 2013 If you show your activities as a money lender, then it will be easier to claim the interest expenses against your interest income.
.
In case you may show any nexus between the amount borrowed and amount lent then also interest can be claimed.
.
In certain cases, interest if not paid for business purpose has been denied to be set off against the interest income.
.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2013 I am not a money lender ? Sir can I know under which section I can claim expense or deduction ?

Upgrade to CAclubindia Pro. Subscribe Now!