29 September 2008
Hi, One of My client had taken Housing Loan for Purchase of House Property in Feb 08 which is under construction. For getting the benefit agst tax (from Salary deduction) he had submitted Provisional Certificate from Bank stating total repayment say Rs. 100000/- as Ineterst & Rs.25000/- as Principal payments towards repayment of loan. Now my question is Whether he can claim full benefit of Rs. 75000/- U/s. 24 & Rs. 25000/- U/s. 80C in FY 08-09? & What about benefits under same heads in FY 09-10 if the amt remains same i.e. Interest & Principal payments in 09-10 Assume same actual payments had been made in both years.
29 September 2008
please go through the explnation to the second proviso to section 24(b)
Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:]
CAclubindia
