Interest paid on unsecured loan

Dilip, Interset paid will be not be allowed as deduction as it will be considered as personal expenditure , (Drawings).

Moreover, interest from partnership firm will be considered as Business Income.

agreee with above

Interest paid can be set-off agains the interest income u/s 57 only if the interest paid is for the purpose of the consequent interest income.. since nature of interest paid and interest received are different, it cannot be adjusted.. Moreover, i agree with the above view, interest received from partnership is taxable under P/G/B/P, and not covered under Income from Other Sources