https://www.taxtmi.com/caselaws?id=13104 Interest earned on a fixed deposit is taxable as income, and it cannot be reduced by interest paid on a loan raised against that deposit unless the Income-tax Act expressly permits such set-off. Section 57(iii) allows deduction only where the expenditure is laid out wholly and exclusively for earning that income within the statutory framework. On that basis, the interest paid on the borrowings was not deductible against the fixed-deposit interest, and the claim for reduction of income was disallowed. en-us Tue, 30 Oct 2001 00:00:00 +0530 Tue, 26 May 2009 13:45:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13104 Interest earned on a fixed deposit is taxable as income, and it cannot be reduced by interest paid on a loan raised against that deposit unless the Income-tax Act expressly permits such set-off. Section 57(iii) allows deduction only where the expenditure is laid out wholly and exclusively for earning that income within the statutory framework. On that basis, the interest paid on the borrowings was not deductible against the fixed-deposit interest, and the claim for reduction of income was disallowed. Case-Laws Income Tax Tue, 30 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13104