Interest on Housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2010 Hi
please answer this question
If an assessee purchased house property during the year 2008-09 and claiming interest on housing loan till the year 2010. After 2years from the purchase he sold for loss (i.e Short term Capital loss).
Is Interest on housing loan already claimed shall be reversed to that extent already claimed? And what about Short Term Capital Loss?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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07 June 2010 Interest on housing loan has already been claimed once. How the same can be claimed twice.

Double deduction of the same thing is not allowable. Hence interest cannot be claimed for capital gains purposes.

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2010 Can u Please reconsider the above.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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08 June 2010 How can an interest deduction taken be reversed for the last two years? The end impact of both the claims would be the same only.

However since the property was already ready for use the interest cost cannot be capitalised for the same. Hence no deduction allowable from capital gains as the same cannot be considered as a cost of improvement nor cost of transfer nor cost of acquisition.