Int paid amount business expenses allowed.

This query is : Resolved 
Quick Summary
This discussion explores whether interest paid on loans for constructing a commercial building can be treated as a business expense for tax purposes. Generally, if you claim interest as a business expense, you cannot capitalise it. However, if your business is construction, you may be able to claim interest as an expense, but still not capitalise it.

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(Querist)
30 August 2020 Assess loan received from banks and others Rs: 70 lacs for the purposes of construction of commerical building .
Question:
Assess loan interest to banks and other persons paid amount treated for business expenses(p&l) allowed or construction of commerical building include interest amount in I.t.act.
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Aashok Kumar Sharmapro badge

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Aashok Kumar Sharmapro badge (Expert)
31 August 2020 If you claim as Business Expenditure you can not capitalise it.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
02 December 2021 If the assessee has construction business, then he claim interest as expense, but cannot capitalize it.
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