Dear Members
Please clarify whether a person having interest income from Fixed deposit can set off the interest income with that of Interest payment on Term loan which he had taken on security of the same Fixed deposit?
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Regarding Interest Income set off
Replies (7)
Only losses can be set off against permissible income.
ur q is not clear
NO INTEREST INCOME WILL BE SHOWN AS INCOME
IF YOU HAVE TAKEN THE LOAN THAN THAT INTEREST WILL BE TAKEN AS EXPENSE
ON THE OTHER HAND IF LOAN IS TAKEN FOR HOUSE PROPERTY THAN IT WILL BE ALLOWABLE UNDER THE HEAD HOUSE PROPERTY
no he can not set off. however if he took term loan for the purpose of business or house property then he can claim interest as expenses or loss from house property respectively and can set off against interest income under other sources.
security does not matter and can not be set off
No it is not allowed,
only those expenses are allowed which are incurred for earning that income.
in u r case,
income is from fixed deposit
expense is for term loan
both are independent to each other
so only interest income on FD is considered
Interest expense on TL is not allowed for deduction on income from other source
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