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Interest on borrowed fund allowed as cost of acquisition

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This query is : Resolved

CA.Monik Dedhia (Querist)
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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.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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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

Message likes : 1 times

Tax pundit

Tax pundit (Expert)
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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.

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