Tax on term deposit interest

I want take loan against term deposit for a short period. Interest payable on such loan 1% above rate of interest paid to me. My question is whether this amount of interest on loan paid by me can be be deducted from the interest on term deposit received by me during that particular financial year. 
e.g Interest received is 1,00,000/- during the financial year & interest paid on loan is 10,000/-
So, whether I will have to pay tax on 1,00,000/- or 90,000/-
Asked 1 year ago in Income Tax from Nashik, Maharashtra
Dear Sir,

You have to pay tax on INR 100000
Abhishek Dugar
CA, Mumbai
1709 Answers
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Hello Sir,

Depends if you are filing Business Returns or Salaried. If it is Business return then you can if it is Salaried then you cannot claim the interest outgo.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
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no
Anuj Agarwal
CA, Aligarh
43 Answers
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