I have purchased a residential Plot in Jan 2011 by availing a loan from a Bank. I am planning to build a HUT using natural materials i.e. no Concrete / no electricity in April 2011. I am planning to spend weekends in the Hut while I would stay in my own house near my work place.
Will the interest paid on land loan be allowed as deduction under Income from House property?
What proof is required to showcase that a house (hut) is built in that piece of Land?
Thanks Karthigeyan
Guest
Guest
(Expert)
18 January 2011
In my opinion,Technically, deduction for interest will not allowed as loan was not borrowed for construction of the residential property.
CAclubindia
