Deduction u/s 24(b)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 sir,
Can an individual claim deduction for interest on housing loan only after gaining possession of the house or even during the house being constructed?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 July 2014 even b4 getting posseeion ind can get but only thing is that u must be the owner legally for claiming this exp.

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 Can the exemption be claimed for under construction property?
are we not required to take 1/5th deduction of aggregate interest after construction is completed?

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CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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23 July 2014 according to my view , ded of 1.5 lac is available only after u get the possession of the property. u r right, intt during construction period can be claimed in 5 installment

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 The interest in 5 installments can be claimed along with the respective years interest, but there is a limit of Rs.150000. So does the max. limit includes this pre construction interest also or the limit is only for current ie respective year's interest?

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 The interest in 5 installments can be claimed in addition to the respective years interest after completion of construction, but there is a limit of Rs.150000. So does the max. limit includes this pre construction interest also or the limit is only for current ie respective year's interest?

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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23 July 2014 sir, pre construction intt is allowed as deduction in five installment form the year in which construction is completed. pls refer to explanation 1 to sec 24 b of the IT ACT

suppose the construction is completed in the July 2014, then intt up to march 2014 will be deductible in five installment from the F.Y 2014-15.

regarding your query, 1/5 th pre construction intt is allowable in addition to limit of rs 1.5 lacs.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 July 2014 Dear Sunil,

Please note that the 1/5 installment is not in addition to the Rs 1.5 lakhs limit. It is within the limit.

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CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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28 July 2014 dear nikhil,

my mistake , u r right, total limit is 1.5 lac including 1/5 th intt installment of pre construction period in case of self occupied house