IS INTEREST PAID ON LATE PAYMENT OF INSTALMENT AGAINST INDUSTRIAL PLOT IS A DEDUCTIBLE AMOUNT UNDER CAPITAL GAIN OR NOT ?
IS INTEREST PAID ON LATE PAYMENT OF INSTALMENT AGAINST INDUSTRIAL PLOT IS A DEDUCTIBLE AMOUNT UNDER CAPITAL GAIN OR NOT ?
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
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
CAclubindia
