25 September 2009
X has one house property in Bangalore. He stays with his family in the house.The rent of similar property in the neighbourhood is Rs.25000 pm. The municipal valuation is Rs.23000 pm .Municipal taxes paid Rs.8000.The house was constructed in the year 2001 with a loan of rs.20 lacs taken from SBI. the construction was completed on 30.11.2004. The accumalted interest upto 31.03.2004 is rs.150000. During the PY 08-09,X paid rs.188000 which included Rs.144000 as interest.Compute X income from house property for AY 09-10. Pls i need solution of this problem. Send the solution on this id: samruta1feb90@gmail.com I have solved my answer is Rs.30400 Is this right?
27 September 2009
The House is self occupied. Net Annual Value is Zero. He is eligible to get i/5 th of Rs 150000/- as pre-construction period interest. Being the 5th yr 30000 pre-const. period +144000 current int subject to ceiling of 150000/ is allowable as deduction. His Income from House Property thus is a loss of 150000/-. Other details are not applicable in case of SOP.
06 November 2009
See the condition that for claiming deduction for interest that the construction of the house property is completed within 3 years from the end of financial year in the the amount was borrowed. As the date of borrowing is not mentioned in the question, if it is on or before 31.3.2001, then the maximum deduction for interest will be Rs.30,000. So the maximum loss can be either Rs.30,000 or Rs.1,50,000.
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