banner_ad

Interest on borrowed fund allowed as cost of acquisition

This query is : Resolved 
Profile Image

Profile Image

(Querist)
19 January 2012 Hello Friends,

I have buy a non-depreciable asset of Rs.15lacs and I have took loan of Rs.10/- lacks. Interest paid on loan is Rs1,50,000/- aprx.

can i claim interest paid on loan to buy an asset as a cost of acquisition for the purpose of calculating capital gain.
Profile Image

CMA Ramesh Krishnan

Profile Image

CMA Ramesh Krishnan (Expert)
19 January 2012 No, for calculating capital gain only can be taken

1. Cost of Acquisition
2. Cost of Improvement
3. Expenses on sales proceeds

Interest on loan not covered
Profile Image

Tax pundit

Profile Image

Tax pundit (Expert)
04 November 2012 Please see the link

https://www.financialexpress.com/news/-interest-on-loans-for-investment-forms-part-of-acquisition-cost-/272753/1

The ratio of the decision in 252 ITR 459 (Mad) is also in favour of the taxpayer.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details