As per Section 14A of the Income Tax Act, 1961, any expendi ture incurred in relation to income not includible in total income is not allowed as a deduction.. Thus, with effect from AY 2004-05 any expenditure incurred on earning dividend and units income would not be deductible, for example, the interest you pay on loan taken for the purpose of buying the shares or units in question. Always avoid taking loan and then investing in the stock market in shares and units of equity-oriented mutual funds. |