Bank charges

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can any one help me in treatment of bank charges in total income statement.....

what the actual case is i have income from other sources(Bank interest of 7826/-) and income from house property(20000*12).... and i hav bank charges of Rs.1124/-. shall i claim bank charges as a deduction in income from Other sources. plz advise me

Replies (7)

Dear Gowri you are not allowed to claim bank charges as expenditure out of bank interest and house property income.

actually Bank charges incurred for the purpose of savings, through that only bank interest will arises.. so, what i'm saying for deriving bank interest i spent some amount in the form of bank charges.. is it correct or not plz advise me...

This is not business income therefore not claimable.

as per section 57 (iii) we can calim any expenditure incurred wholly and exclusively earning that income.

 

hence in that case you can claim bank charges as expenditure but it is strongly recommended that take benefit only when you can prove the same 

Only such expenses is deductible if used for earning income. You can claim Bank charges against Income only against which you have incurred the same as per Sec 57

u can 100% claim ur bank charges against ur int. income.....smiley

As per section 57 Iiii) of other sources, expenditure must not be in the nature of personal. So expenditure should bear a character which has connection with income. else it is not deductible.

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