https://www.taxtmi.com/caselaws?id=7533 Deduction under section 9(1)(iv) of the Indian Income-tax Act, 1922 is confined to interest payable on the borrowed capital used for the property, and the phrase "such capital" refers only to that original capital. Interest on unpaid interest, even if capitalised by agreement, is treated as interest on an additional sum created by capitalisation rather than interest on the borrowed capital itself. The contractual form of compound interest does not expand the statutory allowance, so deduction is not available for capitalised unpaid interest. en-us Tue, 28 Jan 1969 00:00:00 +0530 Wed, 25 Feb 2009 17:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7533 Deduction under section 9(1)(iv) of the Indian Income-tax Act, 1922 is confined to interest payable on the borrowed capital used for the property, and the phrase "such capital" refers only to that original capital. Interest on unpaid interest, even if capitalised by agreement, is treated as interest on an additional sum created by capitalisation rather than interest on the borrowed capital itself. The contractual form of compound interest does not expand the statutory allowance, so deduction is not available for capitalised unpaid interest. Case-Laws Income Tax Tue, 28 Jan 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7533