27 March 2012
Hello My query is that suppose any person opted for housing loan from bank for construction of house,and the construction is under process whether he should be given the deduction of interest while calculating TDS on his salary.
28 March 2012
Deduction of interest is not allowable of the interest on loan till the house is construction. Int. pertaining to period till construction shall be allowed / deducted in five equal annual instalments commencing from the year of construction or purchase.
28 March 2012
No deduction of interest given during the construction period. Once construction is completed, then interest on pre-construction period will be deductible on 5 equall installments.
CAclubindia
