short term gain shares

[satbir singhwahi]

there is short term gain on sale of shares after stt. Whether interest paid on purchase of shares is deductible exp, as cost of acquisition.

AI Summary

Interest on Share Purchase: Deductible Under Cost of Acquisition for Short-Term Capital Gains Per Section 48(ii). A query was raised regarding whether interest paid on the purchase of shares can be considered a deductible expense as part of the cost of acquisition for short-term capital gains. A chartered accountant responded affirmatively, citing Section 48(ii), which allows interest costs to be added to the acquisition cost. Another respondent elaborated that investment activities should be treated as a business venture, with associated costs like interest and staff expenses categorized under business expenses, while income from dividends and share transfers should be treated under other sources and capital gains, respectively.