dear sirs/friends
my doubt...
purchase of capital asset (land/site) Rs.5,00,000
Stamp Duty & Registration Rs. 70,360
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Rs.5,70,360
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further, for purchase of the above asset a loan has been taken from bank/third parties
of Rs.3,00,000 @ 12% rate of interest - loan repayable in 3 years
Ex : on the above loan, we have incurred an amount of Rs.1,08,000
now,
---> can we capitalize the interest on borrowed amount the fixed asset
---> can we consider the total amount of Rs.6,78,360 (Rs.500000+Rs.70360+Rs.108000)
or eligible only Rs.5,70,360/-
by the time we sell it - for the purpose of calculating Short Term/Long Term Capital Gains
CAclubindia
