15 October 2014
plzz ..tell me about the concept of interest of pre- contruction period in case of house property .... how to computed ?? and how to understand ... plz answer me??????
16 October 2014
Interest for pre construction period means interest upto the date of completion of construction. Interest for each financial year is accumulated upto the 31st March of preceding financial year in which the construction is completed. e.g. if the construction is completed on 15.10.2014, interest upto 31.03.2014 is treated as interest for pre construction period. This interest is allowable as deduction u/s 24 equally for next 5 years i.e. 20% each year(starting for FY 2014-15 in above example). This amount is allowed in addition to interest due for each of the next five years. However, the total amount is subject to overall ceiling of Rs. 2 Lacs in case of Self occupied property.
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