What will be the tax implications if someone trades or invest borrowed money?
Like if someone takes personal loan and invests or trades in market would they be able to claim interest repayment as expense to reduce profit?
cut and paste of a question asked in economic times. In short you cannot claim interest repayment as expense.
I have earned substantial income doing marginal trading in HDFC Securities. On an average, I have earned Rs 20,000 per month and paid around Rs 6,000 as marginal interest. Can I claim deduction on short term capital gains in the return?
Divakar Vijayasarathy, Founder and Managing Partner, DVS Advisors LLP replies: As per the Income Tax Act, deductions allowed against the sale of shares resulting in short term capital gains, are the cost of acquisition a …
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