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TMI BlogInterest IncomeX X X X Extracts X X X X X X X X Extracts X X X X ..... Hi My query is related to Interest Income. One of my HUF client is having OD account from which he use to lend money to his proprietary firm, his relatives and get interest which is more than that he pay on his OD account and the same account he also used to pay his personal expenses like LIC, RD etc. Now my concern is the Od interest that he pays should be deducted from interest that he recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved from various parties but how much interest???? Because he is using that Od account for both personal and for lending. We cant say that whole interest is related to personal or for lending. What proportion basis shall I take to distribute the interest amt. Please reply. Regards Rahul - Reply By CA GOPALJI AGRAWAL - The Reply = First interest earned and paid can not be net off. Secondl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, the computation of interest paid on account of personal expenses from borrowed finds have to be computed and deducted from total interest paid. - Reply By RAHUL MALHOTRA - The Reply = Hello Sir Thanks for your response. But if I am showing interest earned as my income than why the expense that I incurred to earn such income is disallowable? I am availing OD limit to lend the amount and ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rning interest and when I am paying interest to bank to avail such limit it is disallowable??Why? - Interest Income - Query Started By: - RAHUL MALHOTRA Dated:- 7-7-2013 Income Tax - Got 2 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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