Interest on borrowed capital

I think You can't add intrest in cost of aquitisition.

If i am wrong plz make me correct???

thanks in advance

I have read that " interest on borrowed capital for purchasing/constructing a house property is a part of capital acquisition"

I have read yhis in A Students Guide to Income Tax of taxmann's publication (by Dr. V.K.Singhania) 40th edition.....

Now please answer my query.........

yaeh Anuraag is right Interest is a part of cost of acquisition

and in this manner assessee can avail these exemptions twicely..........

nice tax planning.....

 Int paid on borrowed capital is capitalised till such time the asset does not start commercial production. As soon as commercial production is started it is not capitalised. it is treated as revenue expenditure. But this true if it is a business asset. In case of residential house if interest has been claimed as an expense and not capitalised then how it cab form part of capital asset. Intest paid  cant be capitalised. 

thanks sir

but what if the aseessee is a salaried employee??

If the assessee is Salaried employee it doesnt make any difference. Same as Mr. Deepak said. however he can take exemption for the principal amount paid to the bank u/s 80c.

Even if the assessee is Salaried employee it doent make any difference , same as said by Mr.deepak. however  the assesse can avail exemp for the principal amt paid to the bank u/s 80c..

thanks deepak sir and raghaban sir...:)

Please read the definition of cost of acquisition u/s 55. Section 55(1) specifically excludes expenses that can be under the head PGBP or CG.

rgds

Deepak Gupta