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
Amir
(Learner)
(4016 Points)
Replied 10 May 2010
Dear Rajesh,
Interest paid can be added to COA provided it has not been claimed under anyother provision.
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 https://www.indiankanoon.org/doc/1736123/
Exemption slab (remaining after other income) - In case of Residents can be claimed for STCG u/s 111A & LTCG
CAclubindia
