Interest on share have to deducted from gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2015 Can Interest on share trading is part of share exp and can same will deduct from gain
short term and speculation or f&O business Income

Amol S Joglekar

Amol S Joglekar (Expert)
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13 August 2015 if the interest is paid/payable for the loan taken for the purpose of share trading, then the same can be treated as expenses. A clear NEXUS between the money borrowed and invested in share trading should be available in such cases

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2015 If a/c ledger of broker is negative and interest is debit every month than same can be treated as exp

as example 200000 share value as credit basis with out any taking loan and broker consider a interest at month ended than interest part will consider as exp and to be deduct from gain

Amol S Joglekar

Amol S Joglekar (Expert)
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14 August 2015 It is nothing but BROKER has extended loan to you.
This can be deducted as expenditure in connection with earning the income. You can very well deduct the same from your gain.

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