Rajesh Gupta Tayi (Writing Final grp2 in nov 2013) (78 Points)
10 May 2010Hi,
Interest Paid For Earning STCG Will be deductable From STCG?
Means Loan Taken for Invest in Equity Shares and Earned STCG. Interest Paid on That Will be Deductable on such STCG?
Shares traded Through Regcon Stock Exchange.
and One More is Exemption Slab Rs.1,60,000/- Will it be Allowable in STCG. because there is no other income.
Urgent Please
Yours
Raj
CA. RUPESH JOSHI
(Chartered Accountant)
(174 Points)
Replied 13 May 2010
Interest Paid on loan taken For investing in Equity shares not allowable as a deduction from STCG.
Benefit of Basic exemption of 1.60 L is available on STCG on Equity
PRATEEK
(ACA)
(102 Points)
Replied 03 June 2010
since there is no specific provision regarding this in capital gain then it should not be allowed as a deduction from STCG.
exemption of RS 160000 can be availed if a security has be sold through recognized stock exchane (short term) u/s 111A(TAXABLE @ 15%). THE BENIFIT IS NOT ALLOWED WHEN SECURITIES LIKE ZERO COUPON BONDS , DEBENTURES (NOT CAPITAL INDEXED) ETC WHICH ARE LONG TERM CAPITAL ASSET AND ON TRANSFER THE COST INFLATION INDEX OF THE COST OF PURCHASE AND IMPROVEMENT IS NOT TAKEN AND THEY ARE TAXABLE @ 10%.
N B SATYANARAYANA MURTY
(Propritor)
(47 Points)
Replied 08 July 2013
When STCG treated as like as business income ,Automatically the costs incurred for getting that income also treated as like as allowble expendature.
BALU
Lerner
CA Rohit Saboo
(Consultant)
(30 Points)
Replied 08 July 2013
Interest expense will not be allowable under STCG. But exemption limit will be allowable if there is no other income. For AY 2013-14 exemption limit is Rs. 200,000 which can be taken against STCG.
CAclubindia
