Capital Gain u/s.111A

Dear Suraj,

YES -

Interest on borrowals is deductible only if it is not allowed under section 57 - The interest paid on borrowings for the acquisition of a capital asset must fall for deduction under section 48. But, if the same sum is already the subject-matter of deduction under other heads like those under section 57, it cannot find a place again for the purpose of computation under section 48 - CIT v. Maithreyi Pai [1985] 152 ITR 247 (Kar.).

Originally posted by : Suraj Prasad Shaw
	Whether interest on loan paid (loan taken to aquire shares) can be included in cost of aquisition for computing Short Term Capital Gain u/s.111A.

Why do you want to include the interest ( paid on loan taken to acquire shares ) in the cost of acquisition of the shares? Not necessary, you can show it as a separate component while computing Short Term Capital Gains.

includable item........