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Partnership firm get interest on bank fdr

Tax queries 966 views 10 replies

sir my question is that 

if any partner ship firm doing business , he get advance money from debtors ., so he collect extra cash . so firm make bank fdr for few time , he get bank interest on fdr 

so my questtion is that 

1. income of this fdr interest  , will conciderd as       business income    or       other source income  ?

  if it have conciderd as other source income ,  will it set off against business loss ?

Replies (10)

I think it will fall under business income head itself.

1. other source i think
In my opinion it is business income as it is temporary/ short term investment out of excess fund of the business.
It shall be taken as a business income, as the funds infused in FDr belongs to business.
Intrest Income will be covered under Income under Other Sources. Firms business may be Manufacturing or Trading but not making deposits in bank , so Intrest on Deposits will be considered as Income from Other Sources.

WILL THIS INCOME SET OFF AGAINST BUSINESS LOSS

 

Business loss cannot be set-off against salary income. It can be set-off against any other incomes

Dear all

I think its have come under Income from other source

thanks & regards

ramanuj

 

Other sources income It is indirect income
Other sources income It is indirect income


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