Interest on borrowed fund allowed as cost of acquisition
This query is : Resolved
19 January 2012
Hello Friends,
I have buy a non-depreciable asset of Rs.15lacs and I have took loan of Rs.10/- lacks. Interest paid on loan is Rs1,50,000/- aprx.
can i claim interest paid on loan to buy an asset as a cost of acquisition for the purpose of calculating capital gain.
I have buy a non-depreciable asset of Rs.15lacs and I have took loan of Rs.10/- lacks. Interest paid on loan is Rs1,50,000/- aprx.
can i claim interest paid on loan to buy an asset as a cost of acquisition for the purpose of calculating capital gain.
19 January 2012
No, for calculating capital gain only can be taken
1. Cost of Acquisition
2. Cost of Improvement
3. Expenses on sales proceeds
Interest on loan not covered
1. Cost of Acquisition
2. Cost of Improvement
3. Expenses on sales proceeds
Interest on loan not covered
Message likes :
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04 November 2012
Please see the link
http://www.financialexpress.com/news/-interest-on-loans-for-investment-forms-part-of-acquisition-cost-/272753/1
The ratio of the decision in 252 ITR 459 (Mad) is also in favour of the taxpayer.
http://www.financialexpress.com/news/-interest-on-loans-for-investment-forms-part-of-acquisition-cost-/272753/1
The ratio of the decision in 252 ITR 459 (Mad) is also in favour of the taxpayer.
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