Interest under sec 24b(interest on borrowing)

This query is : Resolved

P.C. Joshi (Querist)
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05 September 2016 Friends,
I have purchased a house in Noida Extn. in FY 2013-14 in which my wife is a co-applicant. I statred paying EMI from FY 2013-14. Now I will be betting the possesion in Nov-Dec. But the registration will take place after that and final occupation of of the house will take place only after the registartion of Conveyance deed has been done by Noida Authority.

My queries are :

1. When we say that interest u/s 24b ia allowed only after possession what does it mean? does it mean the letter of offer of possession by the builder or the physical posession of the house after sumbission of competeion certifcate by the builder and registration of the conveyance deed with the concerned authority.

2. If the possession or registration as the case may happens in Jan 2017, can I claim the interest for this FY year(2016017) for full year or only proportionate after the date of possession/registration as the case may be.

3. Will the interest for pre-possession/construction period be adjuested (in 5 instalments) in the similar way as the normal interest.

Shall appreciate for an early response.

Thanks
P.C. Joshi

Amol S Joglekar

Amol S Joglekar (Expert)
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05 September 2016 01. after the letter, you take possession.....that date is considered
02.interest till the date of possession......in 5 equal installmetns starting from financial year 2016-17 + interest from jan 2017 to mar 2017 in full
03. as above

P.C. Joshi

P.C. Joshi (Querist)
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05 September 2016 Thank you. Is the registration fee and stamp duty paid for registration is also allowed under interest?

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Amol S Joglekar

Amol S Joglekar (Expert)
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05 September 2016 no, it is allowed under section 80C