HELP ,
This query is : Resolved
01 August 2010
Please tell me the most easiest way to compute and understand
Pre constuction period interest ?
interest ?
please explain with example,
i would be very thankful,
Please tell me the most easiest way to compute and understand
Pre constuction period interest ?
interest ?
please explain with example,
i would be very thankful,
01 August 2010
it is very simple.. it goes like this. the interest til the end of the immediately preceeding financial year in which the house was completed shall be prior period interest. it can be claimed as deduction in 5 equal installments from the year in which the construction is completed
for eg if a loan was taken in the month of june 2007 and the house construction was completed in the month of july 2009 then prior period interest shall be
june 2007 to march 2009.... this the the end of immediately preceeding financial year in which the construction was completed.
if the house gets complete only in the month of sep 2010 then til march 2010 wil be prior period interest
for eg if a loan was taken in the month of june 2007 and the house construction was completed in the month of july 2009 then prior period interest shall be
june 2007 to march 2009.... this the the end of immediately preceeding financial year in which the construction was completed.
if the house gets complete only in the month of sep 2010 then til march 2010 wil be prior period interest
02 August 2010
but is it necessary to cover 5 yrs for split
or 2 yrs interest can be spilit up in 5 yrs ?
and
Plz tel me if a loan has been take on april 2008 and repayement on may 2015
then, in my itr the interest for perioding ending 2009, will be deductible or not ?
or it will be deductible after the send of loan ?
or 2 yrs interest can be spilit up in 5 yrs ?
and
Plz tel me if a loan has been take on april 2008 and repayement on may 2015
then, in my itr the interest for perioding ending 2009, will be deductible or not ?
or it will be deductible after the send of loan ?
02 August 2010
Interest paid during the preconstruction period will be allowable in 5 equal instalments over fice years from the year in which construction is completed.
So interest deduction allowable only from the year in which constuction is complete.
So interest deduction allowable only from the year in which constuction is complete.
02 August 2010
explain this please
100000 @ 10% pa
Date of loan Taken > 1 april 2009
Loan repayment > 28 feb 2013
Construction Complete > 25 dec 2012
In this pre and current year interst ?
according to me
Preconstruction = 1 april 09 to 31 mar 2012
which is deductible from period ending 2013
is that correct ? plz correct me
and provide me current year interest also,
100000 @ 10% pa
Date of loan Taken > 1 april 2009
Loan repayment > 28 feb 2013
Construction Complete > 25 dec 2012
In this pre and current year interst ?
according to me
Preconstruction = 1 april 09 to 31 mar 2012
which is deductible from period ending 2013
is that correct ? plz correct me
and provide me current year interest also,
02 August 2010
Preconstruction Interest will be from 1 april 09 to 31 mar 2012 which will be deductible from year ending 2013 to 2017 in five instalments.
Current year no interest deductible.
Current year no interest deductible.
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02 August 2010
Current year interest is the interest paid during the year for which no deduction will be allowable in the current year but from the year in which construction will be completed.
02 August 2010
if loan is repaid before and construction is completed after ?
will there be any current year interest ?
will there be any current year interest ?
02 August 2010
No. Deduction allowable only after construction is over.
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02 August 2010
EXCELLENT WAY
I M REALLY THANKSFUL
AND I HVE CONVEY THORUGH THANKS BUTTON ALSO SIR
I M REALLY THANKSFUL
AND I HVE CONVEY THORUGH THANKS BUTTON ALSO SIR
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