How much interest amount can be claimed as deduction against dividend u/s 57 and what are other benefits can a share investor claim under this section
Hey @Vikash689,
Section 57 allows you to claim a deduction against any interest that you have paid for earning the dividend income. Hence, if you have taken a loan to purchase shares and you receive dividend on them, you can claim the interest you pay as a deduction.
However, this deduction can go up to a maximum 20% of the dividend income that you earn.
Hope this helps!
If paid Interest through Journal Entry for example I have debited interest account and credited same to the loan account can I claim deduction
For example
If took loan of 1lakh and interest paid 20000 through Journal entry by crediting interest to loan account can I claim deduction
@Surbhi_Pal Here my query : Earning a dividend income of 12 lac per year and i took a loan amount of 25 lacs interest is 2.87lac/year at 11.5% fixed interest
As dividend income taxation comes under individual slab rate, me opted for a old tax regime and i can claim sec-80C and others, along with section 57.?
My income : 12,00,000
Section 80 C with NPS : 2,00,000₹
Section 57 : 20 % of 12 lac= 2,40,000₹
Taxable income now : 7,60,000.???
Am i eligible to claim section 57 along with other sections.???
Hey @Trade_NRE,
Yes, you can claim deduction u/s 57 along with other deductions that you are eligible for.
Can deduction u/s 57 be taken under new scheme?