Interest on Loan to buy shares

J S BHAVSAR (CONSULTING) (1288 Points)

12 August 2021  

ITR2 EFiling AY2021-22

Question 1) If loan has been taken for acquiring shares, is the interest payable on that loan allowed as deduction? Does that hold true for AY2021-22? If allowed for deduction, how to report and which schedule / which row to report?

Question 2) If loan was taken for acquiring shares like Infosys, TCS, Reliance, and the collective dividend those assets gave was Rs 12000. And the interest on the loan is Rs 21000. Is adjustment of dividend with loan interest allowed? That will leave Rs 9000 loss and can we deduct from the income? If yes, which section to report and how?