article is silent about interest received from savings bank account. what if i m paying Rs.60000/- towards personal loan interest and gaining Rs.12000/- as interest from my savings a/c.
RE:tax exemption
by naveen fernandes on Apr 28, 2007 11:51 AM Permalink
Bank interest is taxed. Sec 80L that gave a limited break was topped about 2-3 years ago
RE:tax exemption
by Amitabh on Apr 28, 2007 01:33 PM Permalink
Personal loan interest is notmally not deductible at all.Unless you can show that the loan is being used for business or for earning some income which is taxable and you should be allowed to deduct this interest from the income earned for calculating tax.Bank interest received is now fully taxable.
