interest paid on loan for property purchase, can it be treated as cost and consider for deduction while calculating capital gains. if so, is it as cost of transfer or cost of acquisition(indexed)
Replies (5)
Quick Summary
This discussion explores whether interest paid on a loan taken for property purchase can be included when calculating capital gains tax. Participants debate if it qualifies as a cost of acquisition (and can be indexed) or a cost of transfer. While some suggest it can be claimed under Section 48 if not previously deducted under other sections like 24(b) or 80EE, others note the Act is silent on this specific treatment for capital gains calculations.
If you already claimed the deduction of Interest , then you can't claim it again. In my view If you have not claimed then you can include it as a cost of Acquisition, and can do indexing.
Interest paid on loan can be claimed as deduction u/s 24(b) and also under section 80EE for residential property upto 50000 rupees. But I think for calculation of capital gains you can deduct Interest on loan u/s 48 subject to if you don't have deducted earlier