I hv bank fd with overdraft facility. If i am investing some amount and bank is charging interest on that. If bank is paying fd interest of Rs 50000/- and charging interest of Rs.10000/- then what should be my interest income for incoytax purpose
Ans: For income tax purposes, your interest income will be Rs. 50,000 from the FD. The Rs. 10,000 interest charged on the overdraft is not deductible against this income. So, you'll report the full Rs. 50,000 as interest income.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in