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CA Final doubt

Whether MTF interest expense is allowed against Short term capital gain ?

Asked by Shubham6 Aug 2026932 views

1 answer

  1. Imran · 27 Aug 2026

    No, MTF (Margin Trading Facility) interest expense cannot be deducted directly from Short-Term Capital Gains (STCG) if your trades are classified as capital assets/investments. Provided you can claim deduction as Business expensis where your trading activity is classified as Business income

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