House Property

This query is : Resolved

Pushkar Kumar (Querist)
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11 October 2009 conditions for deduction from self occupied property is:
1. loan is taken on or after 01.04.1999

2. the property is acquired or constructed

3.within three years from the end of the financial year in which capital was borrowed, the deduction of interest shall not exceed Rs. 150000.

now, what does the 3rd condition means.
what if construction taken 4year or more?????

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 October 2009 If the conditions stated above are not fulfilled, then the interest on borrowed capital is deductible up to Rs 30,000 though the following conditions have to be satisfied:
Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property.
Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property.
If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed.

Deepak Goel

Deepak Goel (Expert)
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11 October 2009 If condition 3rd is not fulfil then deduction allowable upto 30000/-

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CA. Vinod Pandey

CA. Vinod Pandey (Expert)
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11 October 2009 I think Rs.1,50,000/- deduction limit is in case of only " where the property is acquired or constructed with capital borrowed on or after 1.4.1999 and said construction acquistion is copleted within 3 years from the end of financial year in which the capital was borrowed.

If the any of the following condition not satisfied then amount would be 30k:
1. Acquistion or construction
2. Capital borrowed on or after 1.4.1999
3. Acquisition or construction should be completed within 3 years of the end of the F/Y in which it was borrowed.