Can I claim deduction for intrsest paid on personal loan ?
Friday, October 30th, 2009 at
12:09 am
biznessnavy asked:
To what extent i can claim the deduction. I’ve taken loan of 1 lac for investment in shares for 2 years @20% from private lender
To what extent i can claim the deduction. I’ve taken loan of 1 lac for investment in shares for 2 years @20% from private lender
Filed under: Investing
Like this post? Subscribe to my RSS feed and get loads more!
The interest paid on the loans taken for the purchase of shares cannot be treated as deduction if you are treating those shares as investment (capital gains). If you are treating those shares as stock-in-trade (business), then the interest can be claimed as deduction.
In Short-term or Long-Term Capital gains you will not be able to claim interest as it is neither cost of acquisition nor cost of improvement.
Open and read the below given web link to understand about interest deduction.