Whether interest on loan paid (loan taken to aquire shares) can be included in cost of aquisition for computing Short Term Capital Gain u/s.111A.
3 Replies
Amir
(Learner)
(4016 Points)
Replied 03 July 2010
Dear Suraj,
YES -
Interest on borrowals is deductible only if it is not allowed under section 57 - The interest paid on borrowings for the acquisition of a capital asset must fall for deduction under section 48. But, if the same sum is already the subject-matter of deduction under other heads like those under section 57, it cannot find a place again for the purpose of computation under section 48 - CIT v. Maithreyi Pai [1985] 152 ITR 247 (Kar.).
Venkateswara Rao Sapare
(Accountant)
(1500 Points)
Replied 03 July 2010
| Originally posted by : Suraj Prasad Shaw | ||
 |
Whether interest on loan paid (loan taken to aquire shares) can be included in cost of aquisition for computing Short Term Capital Gain u/s.111A. |
 |
Why do you want to include the interest ( paid on loan taken to acquire shares ) in the cost of acquisition of the shares? Not necessary, you can show it as a separate component while computing Short Term Capital Gains.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 04 July 2010
includable item........
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