Hello
An assessee earns income from salary only. He has and OD account with bank. On which he pays interest @ 18%
He also earns some minimum interest on FDRs. Can he Claim the interest paid on OD account as an expense against interest earned on FDR.?
Thanks
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but if the assessee breaks his fd and put the amount in his OD then intt would not be paid by the assessee and at the same time interest will not be earned by assessee on fdr
Then it means thtat assessee should not continue its fdr becz in net sense he is paying the interest and not earning
fdr intt is only earned out of the od money
Hi
Interest paid on OD cannot be claimed as an expenses against the income earned on FDR as there is no nexus between expenditure incurred and income earned.
I hope this will clear you.
Thanks
Anubhav (8750089567)
Is it a OD or some personal loan from bank? Interest on that cannot be claimed as loss under income from other sources.
First FDR was created.
But due to some reasons, assessee required funds and withdrawn excess money from his bank account.
Now Intt is been accumulated on that OD account.
However, in current FY , i.e 2014-15, Assessee has taken premature payment of FDr and deposited in OD.
Thanks
Right,
Even there is no link between OD and Interest earned in FDR. You had already fixed deposit before taking loan. And would say that it is useless to co-relate the interest paid on loan and interest earned in FD. So interest paid cannot be deducted from income on FD.
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