Deductions from Capital Gain

Pratik Dhruve (CA) (11 Points)

30 January 2024  

Capital gain query:

Mr. A has a Fixed deposit of Rs. 10 lac @ 6.3% interest.

Interest income of Rs. 63000 is shown under Income from other sources.

Mr. A took an Overdraft of 9 Lacs against this FD @ 7.3%. (Paid interest of Rs. 65,700)

Invested 9 Lacs in equity shares.

Earned Short term capital gain of Rs. 1 Lac.

Can interest paid of Rs. 65,700 be claimed as a deduction from Capital gain Income?