Deduction of interest under section 57, Income Tax

[VINOD JINDAL]

Person borowed money form bank and give its futher to company to earned interest income

TOtal interest Received 50.00 lacs
Total Interest paid to Bank 52.00 lacs

My question is whether he is eligible for deduction of Rs 50 lacs or 52 lacs under section 57

Posts / Replies

[CA GOPALJI AGRAWAL]

First, it is illegal to give loan out of borrowed money as per RBI ACT.

without prejudice to above, it can be treated as business and claim the intt paid as exp.