Sec 57 of icome from other source

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 if we have fixed deposit and receive interest from it but if we take loan against that fixed deposit so paid interest on it.can we take this interest as deduction u/s 57 against receive int. on fixed deposit.

Guest

Guest (Expert)

22 February 2012 Yes. It is possible to claim interest expenditure of loan. But the nexus between loan taken and amount invested in FD must be established before claiming deduction of interest paid on loan.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

22 February 2012 No you can't take set off for interest paid against interest received. Please see Supreme Court decision in CIT V Dr.V.P.Gopinathan (2001) 248 ITR 449.

Guest

Guest (Expert)

22 February 2012 As per that case law assessee made FD in bank and then took loan on security of that FD. The interest on that loan was not allowed but in that case law it is also mentioned that if the assessee had borrowed money on loan and then deposited the amount in bank as FD the interest paid will be allowed while calculating the income.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vishal Kapadiya

Prashant Kotecha

Rajesh

Akash Sawant

JACOB ABRAHAM KURIALANICKAL

Subscribe Now

Sec 57 of icome from other source

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

Manager- Finance and Compliance

GST CONSULTANT

Senior Executive

GST CONSULTANCY

CA Final