Expenditure allowable on STCG

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2010 Hi,

Interest Paid For Earning STCG Will be deductable From STCG?

Means Loan Taken for Invest in Equity Shares and Earned STCG. Interest Paid on That Will be Deductable on such STCG?

Shares traded Through Regcon Stock Exchange.

and One More is Exemption Slab Rs.1,60,000/- Will it be Allowable in STCG. because there is no other income.

Urgent Please

Yours

Raj

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 May 2010 There is case law if amount is borrowed and interest is payable then the gain is be treated as business income as amount is borrowed and invested in share market.

So if income is considered as business income then interest allowable.

Basic exemption of Rs. 160000/- allowable for STC GAins also.