Deduction for housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2013 The assessee is a salaried employee and has taken a housing loan for purchase of flat. However, till now he has not received the possession letter from the builder yet.
The employer of the assessee is demanding for the possession letter for deduction claim.
Please suggest what to do

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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20 March 2013 dear employer is correct..

because as per income tax provisions interest on housing loan is allowed as deduction from the year in which acquisition is made.

and house is said to be acquired either on registry or possession whichever is earlier..

till then interest will be treated as pre construction interest which will be allowed in later 5 years in equal installments..

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2013 thank you for your opinion sir

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