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Long Term Capital Gain

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(Querist)
27 May 2011 Hi
Can any one let me know the treatment of Interest on Property loan when calculating long term capital gain. Is it included in Cost of Acquisition? however in the book of Girish Ahuja it is given that interest on money borrowed for acquiring capital assets will form part of cost of asset. Would Indexation be applicable on Interest as Interest is paid in various years.

Reg.
Atal
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Ashok Asthana

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Ashok Asthana (Expert)
27 May 2011 As per provisions of the IT Act "Interest on money borrowed to purchase asset is part of actual cost of asset"

This suggests that interest to be included in cost of acquisition.

Indexation to be applied year wise in which interest is repaid.
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