income from house property

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Pravallika (Querist)
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19 March 2011 A borrowed 10,00,000@ 12% p.a on 1-4-2000
for construction of house property which was completed on 15-3-2005. the amount is still unpaid.the deduction of interest for previous year 2010-11 shall be?

in this problem my doubt is the pre - construction period is completed up to 2009 - 10
soo wat is abt deduction????

the answer given in the book is 2,16,000

Pravallika

Pravallika (Querist)
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19 March 2011 as early as possible reply me pls

Vinod Kumar Mathuria

Vinod Kumar Mathuria (Expert)
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22 March 2011 Pls. note that the pre construction period intt. will be allowed in equal 5 istallment starting from the year in whcih construction is completed, therefore the preconstruction period is 4 years and intt, is Rs. 480000/5 = 96000 and whole year intt. is Rs. 120000/- than total intt. is Rs. (120000+96000) = 216000

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CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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24 March 2011 Hi,

The Claim of Pre- Construction Interest should end by 31/03/2009.

For the Ayr 2010-11, i.e Pyr 2009-10 ending on 31/03/2010 there cannot be any claim for Pre-Constuction Interest.

Therefore for Pyr 2009-10 ending on 31/03/2010 only Current year Interest of Rs.120000 will be allowed as a deduction & not Rs216000.

I beg to differ with the Text book Answer & the workings given by the Above Expert.

Thank you,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

Pravallika

Pravallika (Querist)
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25 March 2011 exacty my doubt is also same
i agrred with the answer 120000
thnaks sir

Vinod Kumar Mathuria

Vinod Kumar Mathuria (Expert)
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25 March 2011 agreed frnd. i have not read the question exactly which was asked.

Sory

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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26 March 2011 Hi,
You are welcome,

If you have any issues, please do join my community " Lo Aca " so that there are other partners of mine who would be able to assist you to resolve your doubts.

Thank You,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons