cost of aquition

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rohit (Querist)
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20 July 2010
dear experts,

if a person has purchased a house property by taking loan, and has claimed interset deduction under section 24(b), and after 4 years he is selling that particular house property.Will cost of acquition while computing long term capital gain include the interst part which he has incurred while purchasing that property?
if yes,why and if no why?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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20 July 2010 Yes, Interest part is part of purchase cost like principal amount.

You are also claiming deduction for principal repayment u/s 80 C alonwith interest deduction u/s 24.
By claiming dedcution regarding this, it may not be that it will not part of cost of asset.
i.e cost of house = Pricipal Payment plus Interst = Total of Instlament paid.

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rohit

rohit (Querist)
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20 July 2010 required more opinions

srinath

srinath (Expert)
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20 July 2010 Interest part would not form part of the cost of acquisition.

Cost of acquistion would be only the cost at which it is bought. interest payments are already claimed as deduction under house property and u cannot claim the same interest exp again under capital gains

one more point to be included is since the house is sold within 5 years whatever amount claimed as deduction u/s 80C will be deemed income in the hands of the assessee in the year of sale

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