BIR Ruling No. 105-84

June 4, 1984 BIR RULING NO. 105-84 30 (b) (1)-000-00-105-84 S i r : This refers to your letter dated April 26, 1984 requesting as to whether there had been any B.I.R. ruling which disallows interest expense incurred in 1982 due to the fact that the taxpayer is a salaried executive and such interest expense should be deducted from interest income under a separate schedule. I reply, please be informed that pursuant to Section 30(b)(1) of the Tax Code interest paid or accrued within the taxable year on indebtedness may be deducted from gross income except that interest for indebtedness incurred or continued to purchase bonds or other securities, the interest upon which is exempt from tax is not deductible. Accordingly, since before the effectivity of Batas Pambansa Blg. 135 on January 1, 1982, amending Section 21 of the Tax Code, an individual who derives compensation income can validly deduct interest paid or accrued on indebtedness within the taxable year, the deduction of interest expense in 1981 by a salaried individual is allowable. adc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner