Appropriation in interest income

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  1. M P Sharma KGV

    M P Sharma KGV New Member

    A resident senior citizen is having salary/Pension income, received Rs. 20000/- from interest on Bank deposit and paid interest of Rs. 2000/- on Bank Loan & Rs. 1000/- on loan from individual/relative.
    What will be taken as interest income - Rs. 17000/- OR Rs. 20000/-
    Kindly provide relative section applicable in appropriation under I T Act.
     
  2. SUNNY NARANG

    SUNNY NARANG Member

    If the person is having salary or profession income then you have to take Rs 20000 as interest income under the head income from other sources. no deduction on account of interest on bank loan.

    but if you have business 0r profession income and using this loan for business pupose then you can deduction on account of interest paid.
     
  3. INVESTURU

    INVESTURU Member

    Dear MP Sharma, if you have taken bank loan for the purpose of your children/ child education or for the purpose of property, then you can claim deduction U/S 24 or chapter-viA of income tax act, as the case may be.
     
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