Interest on sod (secured over draft limit) deductible ?
This query is : Resolved
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.
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
(Expert)
10 December 2014
Interest paid on SOD is deductible against interest earned on giving loan to people.
10 December 2014
yes agreed with this reply
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.
Under which section the interest on SOD limit is deductible ?
How to show it in the ITR.
CA R SEETHARAMAN
(Expert)
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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