Interest on Borrowed fund for share purchase
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 July 2011
I, a salaried person, sometimes purchase shares (STT paid) on margin. The brokerage firm deducts the interest on the borrowed fund on monthly basis. Please let me know if the interest paid on borrowed fund, is deductible while calculating capital gain.
Also, if borrowed fund is used to purchase share, can the generated income be considered as capital gain? or, it has to be business income?
Also, if borrowed fund is used to purchase share, can the generated income be considered as capital gain? or, it has to be business income?
21 July 2011
If it is short therm capital gain then yes otherwise No. Read Section 14A with rule 8
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