The ITAT ruled that housing loan interest is allowable as part of cost of acquisition for calculating capital gains if it has not been claimed under Section 24(b).
ITAT Allows Housing Loan Interest as Cost of Acquisition
The ITAT has determined that housing loan interest can be included as part of the cost of acquisition when computing capital gains, provided that the interest has not already been claimed as a deduction under Section 24(b) of the Income Tax Act. This ruling expands the interpretation of allowable costs in calculating tax obligations.
This interpretation aligns with the Tribunal's broader perspective on considering all relevant costs that may be incurred in relation to property acquisition, influencing the tax outcomes for taxpayers.
Legal practitioners should leverage this ruling to assist clients in optimizing their tax positions concerning property transactions, highlighting potential deductions for housing loan interest that may benefit their financial standings.
Citations
- ITAT (2026) Tax Case Report
