Capitalisation of interest
This query is : Resolved
12 January 2013
i want to know whether interest paid on loan taken for purchase of house or land can be capitalized in the value of same or not?
whether same can be deductible as cost of acquisition or not?
recently chennai tribunal allows such capitalization of interest of home loan for the holding period and deduction of same from the cost of acquisition.
plz. guide me about this.
whether same can be deductible as cost of acquisition or not?
recently chennai tribunal allows such capitalization of interest of home loan for the holding period and deduction of same from the cost of acquisition.
plz. guide me about this.
CA PARAS BAFNA
(Expert)
12 January 2013
The matter has gone to Tribunal which clearly indicates that- It is not possible to do so, easily. The honorable tribunal must have considered the facts of the case and it is always not necessary that we can apply the Decision in general.
.
In general cases, it can not be capitalised as the assessee is allowed to claim Deduction U/s 24.
.
Further, to bring the House at its existence level, interest does not play any role. It's not the the cost though it may be cost of fund.
.
.
In general cases, it can not be capitalised as the assessee is allowed to claim Deduction U/s 24.
.
Further, to bring the House at its existence level, interest does not play any role. It's not the the cost though it may be cost of fund.
.
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