IS INTEREST PAID ON LATE PAYMENT OF INSTALMENT AGAINST INDUSTRIAL PLOT IS A DEDUCTIBLE AMOUNT UNDER CAPITAL GAIN OR NOT ?
Piyush Jain
(CA)
(283 Points)
Replied 30 April 2009
The interest paid for late payment is not a penalty under a law, but just an additional amount that is paid due to delay in payment, Therefore it will form part of COA and will be deductible.
Regards
Piyush
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 01 May 2009
I agree with the reply of Mr. Piyush. If it is in nature of penalty, than it may disallow. U can include in cost of improvement
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