Interest on sod (secured over draft limit) deductible ?

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AMIT (Querist)
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10 December 2014 Mr. X is a Salaried Employee earning income from salary & other source which includes interest on loan to other parties.

Now, Mr. X Made a SOD Limit of Rs. 4 Lacs against his FDR of Rs. 5 Lacs.

SOD Limit was used for the purpose of giving loan to people & earning interest.

Now my question is,
The Interst paid by MR. X on SOD limit is deductible against the interest earned on FDR & Interest Earned by the way of raising loan ?

Eg. Interest on FDR = 50,000
Interest earned via loan = 1,25,000
Less : Interest on SOD Limit = 45000

Taxable Interest = 1,30,000

Please Specify the Section & How to claim the same in ITR.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 December 2014 Interest paid on SOD is deductible against interest earned on giving loan to people.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 December 2014 yes agreed with this reply

AMIT

AMIT (Querist)
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10 December 2014 But Mr.x is a Salaried Employee.

Under which section the interest on SOD limit is deductible ?

How to show it in the ITR.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 December 2014 No problem he can be a salaried employee. Show net income after deduction under income from other sources.

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