Please Help: Interest on Home loan - Capilised ?
Posted Date : 02-Aug-2014 , 02:00:21 pm | Posted By: CA. DINESH MAHESHWARI
Category :
Income Tax | Answers :
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Comments :
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Can the interest paid on housing loan be also added to the cost of acquisition of the property while calculating the capital gains? |
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Answers:
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 Answer by: Shankygarg |
| Yes,interest paid on housing loan can be added for capital gains. But, it is a controversial matter whether if you claim house loan deduction in 80C.
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| Comments |
| Posted By : Abha |
06-Aug-2014, 01:04:40 |
| NO, interest paid on housing loan can not be added to the cost of acquisition. Interest comes in the picture only after acquiring the property. its a event occurring after acquiring the property. Interest can be claimed against house property income. |
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| Posted By : Shankygarg |
05-Aug-2014, 10:40:31 |
| Actually, that's why i said that it is a controversial issue because both sec. - Income from house property & for Capital Gains are not related because of which it is allowed but due to Double tax benefit it is a highly litigated matter. |
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| Posted By : MANOJ KUMAR AGGARWAL |
04-Aug-2014, 09:37:42 |
| as per my view we can not add interest on house loan in cost for capital gain because loan only for financial matter not for cost eg if we purchase a house 10 lakh in cash.than cost is 10 lakh. other hand we purchase house on loan than we say 10lakh cost+5 lakh interest our cost is 15 lakh.but you know each and every case we take benefit of 5 lakh income from house property then can income tax act give double benefit m.no 09910652297 |
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| Posted By : SHYAM SUNDER |
04-Aug-2014, 03:00:50 |
| Yes, as the case decided in CIT vs Raja Gopala Rao [2001]-(mad.), borrowing directly related to the acquisition and interest paid thereon would form part of the cost of acquisition. |
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