Losses under Other Head of Income

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Loss under the head other Sources An assessee has taken money on loan from various persons on which he pays interest. he has given money on loan to several other persons from whom he receives interest. can he show loss from this process under the head income from other sources. will the loss shown in income tax return be acceptable to the department.
Replies (3)

Yes he can show Loss under the head Other sources.

Yes ofcourse!!! Loss is acceptable to the department..

if he pays high rate of interest and receive lower rate, then department may suspect it as manipulation to reduce the tax liability, so get all related documents ready with agreements, ledgers and loan confirmation for inward and outward both. 


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