Interest deduction on overdrafts requires a proven direct nexus with fixed-deposit income, failing which the claim is disallowed.

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....Interest paid on overdrafts secured against fixed deposits is deductible under section 57(iii) only where the taxpayer establishes a direct nexus between the borrowing cost and interest income taxable as income from other sources. Failure to prove the purpose for which overdraft funds were used, or their connection with the fixed-deposit interest income, prevents deduction of the interest expenditure. On the stated facts, the claimed interest expenditure was disallowed because the required nexus was not established.....