Interest paid on bank loan for purchase of flat--agreement"-

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2016 Flat purchase agreement entered on 10.07.2012 with the complex owner, and on 25.07.2012 loan availed from Bank & remitted to owner on 25.07.2012.For the years 2012-13, 2013-14, 2015-16 bank has charged Interest on loans for the financial years Rs, 100000/- for 2012-13, & Rs.175000/-for 2013-14 , Rs.225000/-for 2014-15 during the financial year complex owner has given possession and ownership right to us .The banker has charged Rs.239000/ as interest on loan for the financial year 2015-16.My query is
1-Whether can I capitalize all the 4 years accumulated interest as pre construction period interest and claim in equal 5 installment as capitalization of pre construction period interest over five equal installment in my regular salary income wef 2016-17 assessment year ?
Please let us know the interest paid on bank loan taken and interest paid for Pre acquisition of ownership of FLAT (Loan taken on 25.07.2012 but Flat ownership given on 25.08.2015) for how the pre acquisition/ possession of Flat interest incurred for the financial years 2012-13, 2013-14,2014-15, 2015-16

Rupesh Jain

Rupesh Jain (Expert)
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30 June 2016 your construction not completed with in three year then you are eligible for Rs. 30000 /- as interest deduction u/s 24(b). and for pre construction period intt. upto 31.3.15 you can make total and take 1/5 of the intt. in next 5 years with normal intt as you are paying to bank on loan. but limit total intt. will be Rs. 30000/- .