24 December 2007
Dear sir 1)one person take loan for purchase of shares for investment purpose. On that loan he paid interst. What is the treatment for this transaction.
2) question: This person purchased shares 4 years ago.since onwards he capitalized that interest. What is the treatment for this transaction.
25 December 2007
Shares is not a qualifying asset and hence any interest on funds borrowed for purchase of shares should be expensed off. The amount of investment has to be written down.
CAclubindia
