Interest on home loan before possesion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2013 Hello,

In financial Year 2010-11 bank has charged Rs. 90,000/- as interest on Home loan.
In FY 2011-12 Bank Has chagred Rs. 1,53.000/-

In FY 2012-13 I got the possession and bank has charged Rs. 1,93,000/- as Interest.

Whether following computation is correct for FY 2012-13

Income from House Property
( rent received Rs.10000*12)
A)1,20,000/-

Less : Sdt. Deduction 30% 36000/-
: Munciple Taxes paid 4000/-
: Interest forFY12-13 193000/-
: 1/5 Interest 48600/-
(90000+153000=243000)-------
B) 2,81,600/-
Loss on H.property A-B=(1,61,600)

Whether the earlier two years interest charged by the bank should appere in income tax return for the particular year.
If yes under which heaed ?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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25 June 2013 In your computation there is small mistake i.e is nothing but you first deducted Sdt.deduction and later Munciple taxes it is wrong computation.

First you have to deduct Munciple taxes from the ALV and then compute sdt deduction @30% on the Net ALV(after deduction of Munciple taxes).

I not completed my suggestion and full answer to your query to complete this first of all please clarify me from which month and Year repayment of housing loan(EMI) has been started.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2013 Thanks for the reply.

Actual date of Payment is 10 April 2012

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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25 June 2013 Then your computation is correct but make the some correction of mistake above i identified i.e ALV-Municiple taxes and on this balance amount calculate Std. Deduction 30%.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2013 Thanks for the confirmation.

I have posted one more query related to infrastructure charges charged by the township instead of municipal taxes.
Pl. resolve the same

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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25 June 2013 can you provide the such query at here once again.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2013 My Querry is as under

In Township concept, Township is providing water, roads, garden, light,school, Hospital, shopping mall etc. to the citizen.

They are charging Infrastructure charges instead of munciple taxes.

Whether that infrastructure charges can be deducted from the House property income as munciple taxes ?
Such provision may not be there in Law but can we get some alternative ?

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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26 June 2013 No Infrastructure Charges cannot be deducted

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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26 June 2013 No, you can't claim that as munciple taxes and such all expenses included in the standard deduction of 30% only.

Because of munciple taxes means paying property tax to the muncipality for the maintenance expenses of muncipality. But you said expenses is related to the service provided expenses so such expenses doesn't cover under munciple taxes and any provision or sections of act doesn't giving deduction for such expenditure.

So can't treat it as munciple taxes.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 But Muncipalty is not charging Munciple Taxes for the said township.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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27 June 2013 Even though No munciple taxes on such property township charges doesn't claim as munciple taxes according to my knowledge.

OM SAI SRI SAI JAI JAI SAI