Hi,
I am a individual Tax Payer. I have a FD say of Rs 10,00,000/- @ 9% pa Interest on which the bank deducts TDS and deposits the interest in my bank account.
Against this FD, I have taken a OD loan for Rs 800000/- @ 10.5%. The bank takes monthly interest on the same from me.
Can I claim the Interest paid on FD from my Interest income for the current financial year?
Thanks
RG
The Supreme Court has held that interest received by the assessee from the bank on a fixed deposit is income in his hands and there could be no deduction therefrom unless there is a law permitting such deduction. The interest on a loan taken by the assessee on the security of the FD did not go to reduce the income by way of interest on the fixed deposit as there was no provision for deduction of such interest on the loan.
CIT v. Dr. V. Gopinathan (2001) 248 ITR 449(SC)
Regards,
Shraddha
it can not be set off
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