Interest deduction under home loan

This query is : Resolved

Ravi Kumar Rajgaria (Querist)
Follow

12 March 2009 i took a loan for 75 lacs for construction on April,2008 and started construction from same month and paying EMI from April,2008 onwards to bank.

Can i claim interst paid for Rs. 150000/- on loan as deduction u/s 24(b) for the FY 2008-2009 as construction is still going on?

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
Follow

12 March 2009 you can claim interest deduction for the current year on the outstanding amount of loan but not Pre-construction period interest because still construction is going on.

C A GROUP COACHING

C A GROUP COACHING (Expert)
Follow

15 March 2009 WILL YOU CONSTRUCTION GET OVER / PROPERTY READY FOR OCCUPATION ON OR BEFORE 31.03.2009 IF YES THEN YOU CAN CLAIM INTEREST IN THIS YEAR ELSE YOU WILL HAVE TO ACCUMULATE YOUR INTEREST TO BE CLAIMED IN 5 EQUAL INSTL STARTING FROM WHEN THE HOUSE IS COMPLETE READY FOR OCCUPATION & INT FOR THE YEAR IN WHICH CONST. IS COMPLETED WILL ALSO BE CLAIMED AT FULL IN THE SAME YEAR ALONG WITH 1st INSTL OF ACCUMULATED INT.YEAR

Upgrade to CAclubindia Pro. Subscribe Now!