Interest on Residential Flat

This query is : Resolved

PREMAL (Querist)
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24 February 2011 Dear All

Please guide me for the benefit of Interest and principal amount on residentioal flat will be allowed for 90% constructed building as on 23-2-11 in ratnagiri, where as i am staying in mumbai for FY 10-11.

S.A.BADAMIKAR

S.A.BADAMIKAR (Expert)
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24 February 2011 (Assuming the Ratnagiri house is only house in your name and not let-out) Interest on housing loan is allowed as deduction in the year in which house is constructed . The interest paid/payable up to the period prior to the previous year in which the property is constructed would be allowed in Five (5) equal installments starting from the year in which property is constructed.