03 January 2014
One of my client(Individual, Resident of New Delhi)have purchased Land in Jaipur for which he has taken personal loan from bank.Can he get deduction of Principal & interest amount?If no then please suggest me(if any) to get deduction .
03 January 2014
under 80C you not claim your principal amount bcoz u purhcased house, under section 80C Dedcution is allowabel only if house is constructed and prinicipal amount paid in regarding loan taken for construction, but
you calim interest dedcution u/s 24b and and you have any income in the current year then such interest loss setoff your current year income, otherwise carrie forward
03 January 2014
If after some time I have started construction on that land.Loan earlier taken to purchase the land is allowable for deduction or not? or I will have to take fresh loan for construction of house to get deduction?
03 January 2014
Yes, Allowable but Praposnate amount which you utilized for construction only that part interest allowabel but you have to prove it when intimation come from department other wise not problem
CAclubindia
