SET OFF OF INTEREST

 

1)I am in receipt of post office monthly income under MIS scheme(Which was earlier exempt under 80L  but now taxable) and simultaneously I am paying interest on loan which I took for investing  in MIS scheme .so can I set off that interest paid with interest received from post office.
Replies (4)

Dear Arvind,

As per I.Tax Act,1961,you can adjust the Interest paid  with  interest earned income, net amount is taxable under the head of  other sources.

Thanks

Jai Ho

S.K.GUPTA

 

You can.

YES  SATYENDRA IS RIGHT.

Hi Mr. Arvind,

The interest income under MIS scheme is taxable under section 56 and you can claim the deduction of the interest on loan borowwed for investing money in MIS scheme under section 57.

I hope you will find this information useful.

Regards

Vijay Kumar

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