27 November 2009
An individual takes a housing loan for consturction on 01/07/2008 & on the same date he purchases a plot.He pays interest of about Rs.50000/- during the F.YR 2008-09. The construction on house on the plot is not yet finished. So whether this year's interest payment can be shown for deduction in House Property, if so what will the amount? or interest is treated only after the completion of construction?No repayment of loan is there.
27 November 2009
It will be allowed from the year of completion of construction in 5 equal instalments subject to the provisions of Section 24 i. e. limit of total interest deduction of 150000
27 November 2009
pre-construction period interest is allowed in 5 equal annual installment from the previous year in which the construction is completed. however the total interest Current year as well as pre-construction interest can not exceed Rs. 1,50,000 p.a u/s 24(b)
CAclubindia
