I need some advice on the following situation:
The assessee is a company doing some manufacturing business, it is having borrowed funds @ 12%, and it is receiving interest income 8 % on FDs now, the question is this income should be charged to tax under the head PGBP or Income from OS, if it is charged to tax under head PGBP, then the assessee will automaticalaly get deduction of interest paid, and even where he is having a loss, then this loss is capable of being carried forward till 8 assessment years, but when this income is charged to tax under the head income from other sources, then how will the loss be treated in return of income, will the expenditure be restricted to interest income, or there is some way of claining loss in the ROI.
My email id is jitin.51112 @ gmail.com
Please post your opinions.
CAclubindia
