Capital gains: INTEREST ON BORROWED CAPITAL ALLOWED AS COST OF ACQUISITION OF ASSET - recent decision in favor of assessee. However, with respect the author feels otherwise about post acquisition interest.

Capital gains: INTEREST ON BORROWED CAPITAL ALLOWED AS COST OF ACQUISITION OF ASSET - recent decision in favor of assessee. However, with respect the author feels otherwise about post acquisition interest. https://www.taxtmi.com/article/detailed?id=976 Interest on borrowed funds used to acquire or to bring an asset into usable condition may be capitalized and included in the cost of acquisition for capital gains computation; by contrast, interest incurred after the asset is acquired or put to use is a holding or carrying cost and not part of the cost of acquisition. Judicial authority recognises pre-acquisition interest capitalization but bars double deduction where the same interest has been allowed under other heads of income. en-us Tue, 05 Oct 2010 00:00:00 +0530 Tue, 05 Oct 2010 13:54:30 +0530 TaxTMI RSS Generator Capital gains: INTEREST ON BORROWED CAPITAL ALLOWED AS COST OF ACQUISITION OF ASSET - recent decision in favor of assessee. However, with respect the author feels otherwise about post acquisition interest. https://www.taxtmi.com/article/detailed?id=976 Interest on borrowed funds used to acquire or to bring an asset into usable condition may be capitalized and included in the cost of acquisition for capital gains computation; by contrast, interest incurred after the asset is acquired or put to use is a holding or carrying cost and not part of the cost of acquisition. Judicial authority recognises pre-acquisition interest capitalization but bars double deduction where the same interest has been allowed under other heads of income. Articles Income Tax Tue, 05 Oct 2010 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=976