27 July 2014
Purchase a property (Flat) for Rs. 58,30,500 on which a loan of Rs.25,00,000 has been taken. The bank is charging an interest of Rs.49,826. Can I claim deduction for this amount as interest on borrowed capital under the head income from house property? The property under construction with the builder.
27 July 2014
you cannot claim deduction for interest till the house is under construction.
You need to accumulate the interest till the year before the year in which the construction is completed. This accumulated interest shall be claimed as deduction in five equal installments starting from the year in which the house is completed.
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