Interest Expenses Not Deductible from Salary When Unrelated to Services Rendered; Interest-Free Loans to Employer Not Justified.

Interest Expenses Not Deductible from Salary When Unrelated to Services Rendered; Interest-Free Loans to Employer Not Justified. https://www.taxtmi.com/highlights?id=60909 Professional income V/s Salary income - When an assessee insists that he is rendering professional / technical services to a company, the burden is on him to prove the same. - Only such expenditure which has been incurred wholly and exclusively to earn a particular income is allowable as a deduction from such income. In the instant case, there is no relation whatsoever between the interest expenditure from a mortgaged loan and the payment received for rendering certain services. Advancing interest free loans to the employer company cannot be a ground for claiming deduction of interest expenditure from the salary income received from it. - AT en-us Mon, 13 Dec 2021 10:45:55 +0530 Mon, 13 Dec 2021 10:45:55 +0530 TaxTMI RSS Generator Interest Expenses Not Deductible from Salary When Unrelated to Services Rendered; Interest-Free Loans to Employer Not Justified. https://www.taxtmi.com/highlights?id=60909 Professional income V/s Salary income - When an assessee insists that he is rendering professional / technical services to a company, the burden is on him to prove the same. - Only such expenditure which has been incurred wholly and exclusively to earn a particular income is allowable as a deduction from such income. In the instant case, there is no relation whatsoever between the interest expenditure from a mortgaged loan and the payment received for rendering certain services. Advancing interest free loans to the employer company cannot be a ground for claiming deduction of interest expenditure from the salary income received from it. - AT Highlights Income Tax Mon, 13 Dec 2021 10:45:55 +0530 https://www.taxtmi.com/highlights?id=60909