Interest Not Claimed Under Section 24 is Cost of Acquisition for Capital Gains Computation !

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Can interest paid by the taxpayer on loan for acquiring a capital asset be added to the cost of acquisition while computing the taxable capital gains when one later sells the asset? Good news for taxpayers is that this question is answered in affirmative by various courts. In fact, one bench of tax tribunal has gone too far in holding that even double deduction –interest claimed as a deduction u/s 24 can also be deducted again u/s 48 of the Income tax Act while computing capital gains. This, in my opinion, requires serious consideration.

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