loss under the head other sources

[manoj gupta]

An assessee has taken money on loan from various persons on which he pays interest. he has given money on loan to several other persons from whom he receives interest. can he show loss from this process under the head income from other sources. will the loss shown in income tax return be acceptable to the department.

AI Summary

Taxpayer Queries Loss Declaration Under 'Income from Other Sources'; Experts Discuss Section 71 and Section 57 Deductions. An individual inquired about declaring a loss from loan interest transactions under the 'income from other sources' category on their tax return. The first respondent questioned why it wasn't classified as a business activity and emphasized the need to justify the loss and interest expenses. The second respondent confirmed that intra-head adjustments of losses and profits are permissible under section 71, and section 57 allows for the deduction of expenses incurred to earn income. However, they acknowledged the relevance of the first respondent's questions regarding the classification and justification of the loss.