Interest expense whether allowed

Devendra (Chartered Accountant) (4775 Points)

05 October 2011  

Mr. X has earned Interest from Saving Bank a/cs from various bank which amounts to Rs. 4150/- also simultaneuosly various banks have debited the Bank charges / interest which comes to around Rs. 1010/-. My question is can the Bank Interest charged by the bank be allowed as a deduction from the bank Interest earned from various banks? (ie. taxable amt Rs. 4150/- or Rs. 3140/- [4150-1010] please guide me.


Devendra K