Mr Gopal Chouhan aged 61 years received dividend of 1200000 rupees from Tesla limited in previous year 2020 21. Interest on loan taken for the purpose of investment in Tesla limited is 300000 rupees income included in the hands of Mr Gopal for previous year 2020 21 would be?
Mr Gopal you are right. As per the amended section 57 of the Income Tax Act, 1961 ('Act'), interest expense incurred for the purpose of earning the dividend income would be allowed as a deduction up to a maximum of 20% of such income So answer will be 960000
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