Capital gain query:
Mr. A has a Fixed deposit of Rs. 10 lac @ 6.3% interest.
Interest income of Rs. 63000 is shown under Income from other sources.
Mr. A took an Overdraft of 9 Lacs against this FD @ 7.3%. (Paid interest of Rs. 65,700)
Invested 9 Lacs in equity shares.
Earned Short term capital gain of Rs. 1 Lac.
Can interest paid of Rs. 65,700 be claimed as a deduction from Capital gain Income?
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