Capital gain
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 February 2014
Whether interest on borrowed capital to purchase property is allowable expenditure against the income from Short term capital gain
18 February 2014
1. Interest on borrowed capital is allowable as deduction u/s 24 while computing income from house property.
If there is no income, deduction will result in loss which can be set off against other income.
2. Deduction of interest is NOT allowed while computing capital gain. Deduction is allowed only for cost of acquisition & cost of improvement.
Interest cost is neither of the above.
If there is no income, deduction will result in loss which can be set off against other income.
2. Deduction of interest is NOT allowed while computing capital gain. Deduction is allowed only for cost of acquisition & cost of improvement.
Interest cost is neither of the above.
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 February 2014
but sir, we had taken unsecured loans to purchase that properties and on the sale of the said properties, we had claim interest expenditure while computing STCG.....
whether this interest cost is allowable or not?????
whether this interest cost is allowable or not?????
20 February 2014
Interest cost is NOT allowable as deduction while computing capital gain.
Section 48 prescribes the manner of computation of capital gain:
Capital gain is to be computed as under:
Sale Consideration
Less: Cost of acquisition
Less: Cost of improvement
Cost of acquisition is defined in Section 55. Interest cost is NOT included in cost of acquisition.
Section 48 prescribes the manner of computation of capital gain:
Capital gain is to be computed as under:
Sale Consideration
Less: Cost of acquisition
Less: Cost of improvement
Cost of acquisition is defined in Section 55. Interest cost is NOT included in cost of acquisition.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Relief u/s Section 89
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Lease agreement and tax on sale
- CCFS 2026 Schemed
- Supply through E-commerce Operators
- STCG on ETF gold & silver
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
