intt on loan for pur of plot

This query is : Resolved

kirit kalyani (Querist)
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07 January 2009 i took loan of rs 10 lacs for pur of plot of rs 25 lacs. intt on the loan for 2 yrs was paid to the tune of rs 3 lacs. now plot is sold for 32 lacs [stcg 7 lacs]. whether intt can be taken as part of cost of plot ?

kirit kalyani

kirit kalyani (Querist)
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07 January 2009 1

K V Subba Rao

K V Subba Rao (Expert)
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07 January 2009 Interest paid on a loan taken for the purchase of a plot of land is not considered as an expense towards purchase.

Therefore, it can not be included in the cost of acquisition

(Source: http://www.raagvamdatt.com/Article121.html

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