Interest on borrowed fund allowed as cost of acquisition

This query is : Resolved

CA.Monik Dedhia (Querist)
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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.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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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

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Tax pundit

Tax pundit (Expert)
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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.

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