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Interest on housing loan as part of cost of acquisition

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Sreevidhya V

335 Points Posted on 19 July 2023

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for calculating cost of acquisition for house property In capital gain
1. can we add interest on housing loan not claimed before under sec 24 to cost of acquisition?
2. if it can be added, how is the indexation for the same worked out? like year on year for payment of interest we need to do indexation separately and added to cost or
simply added to cost of purchase and index from year of purchase of property itself?

Replies (3)

Quick Summary

This discussion explores whether interest paid on a housing loan can be included as part of the cost of acquisition for capital gains tax purposes. It questions how indexation would apply to such interest payments and discusses the relevance of recent finance act amendments that seem to disallow interest deductions from the cost of acquisition.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 19 July 2023

Interest paid on housing loan is not eligible for deduction under Capital Gains.

sabyasachi mukherjee

Profession

19978 Points Posted on 19 July 2023

For calculating cost of accquistion indexed cost of accquistion plus improvement , interest on housing loan
benefit you can get.

Sreevidhya V

335 Points Posted on 19 July 2023

Thank you for the reply. but sir in the recent amendment in finance act 2023, it is said cost of acquisition or improvement shall not include deductions claimed on thr amount of interest under section 24.
what is the relevance of this amendment? does it mean if interest claimed under 24b is less, we can add balance interest to cost of acquisition? or it is entirely not allowed