27 August 2008
Mr. kalpesh borrowed a sum of rs. 30 lakhs from the national housing bank towards purchase of a residential flat. the loan amount was disbursed directly to the flat promoter by the bank. though the constuction was completed in may, 2008,repayments towards principal and interest had been made during the year ended 31.3.2008.
in the light of the above facts, state
a) whether MR. kaplesh can claim deduction under section 24 in respect of interest for the assesesment year 2008-09;
b) whether deduction under section 80c can be claimed for the above assessement year, even though the coustruction was completed only after the closure of the year. pls solve this querry as a student. becuase i want a systematic ANS.
27 August 2008
Yes, deduction u/s 80C may be claimed. However, the deduction of interest u/s 24 will be allowed from the year in which the construction is completed. The interest for the period prior to the year of completion shall be deductible in 5 equal annual instalments commencing from the year in which construction is completed alongwith interest for the relavant year itself.
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