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Interest on loan taken to buy shares.

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(Querist)
30 July 2012 My clint has taken loan to buy shares. Now when he is selling shares he has got shor term cap gian.
So is there any provision for which i can claim the interest amt as expense from short term cap gain or can i increse the cost of shares upto that interest ..?
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CA Lokesh Pokharna

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CA Lokesh Pokharna (Expert)
30 July 2012 yes, as short term cap gain is a taxable event hence it can be used to increase cost of shares, but it would be proportionately bcoz it wil not be used due to dividend sttriping provisions .......its a critical issue ... requires huge calculations
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