Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2016 I have purchased property by taking loan and I have claimed pre construction interest for past 3 years in my return of income. I would wish to sell the same property now. I would like to know if I can claim pre construction interest for further 2 years even after sale of said property.

Also i have made payment to builder for above property on installment basis. Now can i claim cost index on payment basis or on date of registration only?

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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27 January 2016 Interest on money borrowed for acquiring capital assets will form part of cost of asset. CIT V Mithlesh Kumari (1973) 92 ITR 9 (Delhi).
As per Section 2(14) or as per section 2(42) the term used is "held" means first held by the assessee. The period of holding by the assessee starts normally from its date of registration and the cost as mentioned therein to be taken as cost of acquisition irrespective of full payment made or to be made.

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2016 If this is 3rd year i am claiming pre construction interest and if i sell property today can i claim pre construction interest for next 2 years

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CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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01 February 2016 Hope you are writing about claiming of interest u/s 24 of the Income Tax Act. When there is no house property, the question of claiming interest on that property will not arise.