Taxability of interest income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2016 Sir,

If a salaried employee takes a personal loan and further gives loan to some other person. He is receiving interest say 20000 (after TDS) from such other person and further paying interest say 16000 on loan taken on his personal capacity.
Now on in the hands of the salaried employee what amount is taxable. ie on 20000 or 4000.

Q1) Can he file his return under business income along with salaried showing reciept of 20000 and payment of 16000 and paying tax on 4000 net

Please respond asap!!!!!!!

please respond asap!!!

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

26 June 2016 an amount of interest receivable is taxable i.e. 20,000
No deduction per se is available except for the expenditure incurred for collecting the interest

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2016 sir,

thanx for your response. sir can you please let me know the sections as per which this is taxable. or is there any case law for this

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

26 June 2016 in fact GROSS interest will be taxable......i.e. 20,000+TDS
section 2 defines INCOME.
Please note the definition is INCLUSIVE definition

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2016 sir,
can you please quote me the exact section which allows or does not allow interest to be disclosed as income along with expense. and if there is any case law which allows or does not allow for this do let me know.plzzzz

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

04 July 2016 incidental expenses incurred to collect the interest is deductible....section 57

https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

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

Vishnu Agarwal

Rajat Khandelwal

Anurag Sharma

Suranjan Das

Sanoj T

Subscribe Now

Taxability of interest income

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

CA Final

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance

Senior Executive