Interest on building loan
This query is : Resolved
18 July 2025
My cleint has constructed a shop used for business.
Int paid on loan nealry 20 lakhs
Can we capitalise that interest before and after construction??
Because if I show it as bus.exp, profit will zero
Then bank OD,loan purpose get difficult
Pls suggest
Int paid on loan nealry 20 lakhs
Can we capitalise that interest before and after construction??
Because if I show it as bus.exp, profit will zero
Then bank OD,loan purpose get difficult
Pls suggest
18 July 2025
You can only capitalize interest paid over construction loan till the date of completion. After that it is been treated as revenue expenditure.
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