Deduction of interest under section 57

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....eduction of interest under section 57<br> Query (Issue) Started By: - VINOD JINDAL Dated:- 1-1-2014 Last Reply Date:- 3-1-2014 Income Tax<br>Got 1 Reply<br>Income Tax<br>Person borowed money form bank....

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.... and give its futher to company to earned interest income TOtal interest Received 50.00 lacs Total Interest paid to Bank 52.00 lacs My question is whether he is eligible for deduction of Rs 50 lacs ....

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....or 52 lacs under section 57 Reply By CA GOPALJI AGRAWAL: The Reply: First, it is illegal to give loan out of borrowed money as per RBI ACT. without prejudice to above, it can be treated as business....

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.... and claim the intt paid as exp.<br> Discussion Forum - Knowledge Sharing ....