Pre-construction period interest
This query is : Resolved
04 April 2023
Hello
My house is ready for delivery. I have taken a home loan for the construction. The apartment complex took 7-8 years to reach completion stage, primarily due to COVID related lockdowns. I have been paying pre-construction interest all these years.
Can I claim this pre-construction period interest in total over the next 5 years? Or am I only eligible to claim Rs. 30K per year for 5 years.
The delay is purely force majeure.
Please help..
My house is ready for delivery. I have taken a home loan for the construction. The apartment complex took 7-8 years to reach completion stage, primarily due to COVID related lockdowns. I have been paying pre-construction interest all these years.
Can I claim this pre-construction period interest in total over the next 5 years? Or am I only eligible to claim Rs. 30K per year for 5 years.
The delay is purely force majeure.
Please help..
05 April 2023
You can claim the preconstruction interest over a period of 5 years.
The total interest claim in a year can't exceed 2 lacs including current year interest.
The total interest claim in a year can't exceed 2 lacs including current year interest.
Message likes :
1 times
05 April 2023
Deduction for interest on borrowed capital shall be limited to Rs. 30,000 in following circumstances:
a) If capital is borrowed before 01-04-1999 for the purpose of purchase or construction of a house property;
b) If capital is borrowed on or after 01-04-1999 for the purpose of re-construction, repairs or renewals of a house property;
c) If capital is borrowed on or after 01-04-1999 but construction of house property is not completed within five years from end of the previous year in which capital was borrowed.
a) If capital is borrowed before 01-04-1999 for the purpose of purchase or construction of a house property;
b) If capital is borrowed on or after 01-04-1999 for the purpose of re-construction, repairs or renewals of a house property;
c) If capital is borrowed on or after 01-04-1999 but construction of house property is not completed within five years from end of the previous year in which capital was borrowed.
Message likes :
1 times
05 April 2023
Just an add on question. If there is a limitation of 2L per annum, how do I claim the total preconstruction interest of 15L? Can I claim beyond 5 years?
05 April 2023
You can't claim beyond 5 years.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
