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Income Tax - Highlights / Catch Notes

Home Highlights October 2018 Year 2018 This

Netting off of interest interest income - The source of interest ...

Income Tax

October 17, 2018

Netting off of interest interest income - The source of interest earning remained intact. In doing so, the assessee had to incur interest expenditure on overdraft. The source of income and application of income is same, i.e. FD. - netting off of interest has to be allowed to the assessee

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  2. Netting off of interest is permissible. Interest earned from the bank and interest paid to the bank has to be netted off and only surplus interest becomes income of the assessee.

  3. Netting of interest-unless funds are borrowed for making deposit to earn interest, such interest paid can't be allowed as deduction from interest income u/s 57

  4. Deduction of expenditure incurred in earning income u/s 56 - assessee is a Thrift and Credit Society - the source is inextricable to the nature of the expenditure -...

  5. The mere fact that the respondent did not earn any income on its investment made, the interest expenditure would not cease to be an expenditure incurred for business.

  6. Disallowance to deduct the cost and expenditure incurred in earning income under the head "income from other sources" - What can be taxed is only the net income which...

  7. Addition u/s 14A - ‘net’ interest expenditure - where after setting off interest earned against the interest expenditure no further interest expense remains then...

  8. Interest earned on deposit - principle of mutuality - The interest earned on such deposit has a clear and direct nexus to the expenditure incurred in the form of...

  9. Deduction u/s 80-IB - netting off of interest - assessee has purchased the FDRs from the cash credit accounts on which it has paid interest which can proved from the...

  10. Expenses, which were not incurred wholly and exclusively for the purposes of earning the income from other sources, cannot be allowed deduction u/s 57.

 

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