INCOME FROM HOUSE PROPERTY.

This query is : Resolved

VINAYAK KUMAR (Querist)
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03 October 2009 Dear sir/madam
please suggest me that what is the provision regarding deduction of interest on loan taken for construction of self occupied house property. please cleare that "house property must be complited within three years" what will happen if house is not complited within three years ?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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03 October 2009 If house property is not constructed/ completed in 3 years, pre constructional Interest shall NOT be allowed

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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03 October 2009 https://www.caclubindia.com/forum/messages/2009/10/50265_interest_on_loan_or_borrowed_capital_u_s_24_b_.asp

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Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)
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03 October 2009 Interest on borrowed capital is deductible on accrual basis.

If the house is completed with in 3 years from the end of the FY in which the loan is taken you can claim deduction of interest upto Rs.1,50,000.

If the house is not completed within 3 years you can claim interest only upto Rs. 30,000 as deduction.

Pre construction period interest will be allowed irrespective of period of completion of construction/purchase.