Int on borroed capital used for expansion of bus

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2011 if i purchase building premises for expansion of business of existing business and paying EMI each month,can i claim deduction of interest in PGBP head?

can i claim for deduction principal amt
?
if not why?

CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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13 December 2011 Interest will be allowed as deduction and Principal amount will not be allowed as deduction.

Principal is nothing but it will be asset to you after the loan repayment was done. It is nothing but acquiring a capital asset.

Thanks,
CA M Sreenivasa Rao.