07 December 2012
Example:- R book a flat in residential appartment on jan.2012 take a housing loan. Time to completion the flat will be 2yrs i.e jan.2014. Question=Interest paid during construction period is allowed as deduction u/s 24 in the year of interest paid itself or claim as deduction in 5 installments after giving possession of flat?
Give answer according to the Income tax Act and in regular practice of CA, both.
08 December 2012
Agree with CA Manish.. The law allows you to get deduction from the year in which it is capable of being generating revenues. you will be eligible for deduction from the year of construction in equal five instalment for five years
CAclubindia
