Hi,
I am taking loan from bank (by pledging my home) to buy shares of a Private Ltd firm in which I am a director n hold 33%. What will be the treatment of intrest paid on this loan in my individual IT returns? Can it be deducted from my taxable income?
Thanking you all in advance for support
yes. i think that u can claim interest expenses from your income, as your investment is in private limited company whose share are not traded in any recognised stock exchange.
Yes this is a private ltd co, closely held & not listed on any of the recognised exchanges ever. But can you let me know any document or section which specifies that interest paid on loan taken to buy private ltd co can be treated as expense in director's account (on whose name the loan is).
As per my discussion with some other CA friends, they are saying it is a loan taken for investment and hence, interest payable will not be taken into expenses. Whereas the reason for buying shares is not for returns but to get controlling stake in the company.
Can anyone please elaborate? Answer to this will help me decide the way forward. Please help.
CAclubindia
