pre construction period interest on housing loan

This query is : Resolved

Jiwan singh (Querist)
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23 October 2008 Dear all

I TAKE LOAN FROM BANK ON 01.06.07 (2007-08) FOR RESIDENCE HOUSE , RESIDENCE HOUSE COMPLETED ON 01.02.08 , WHICH AMOUNT I CLAIM FOR INTEREST ON HOUSEING LOAN ?

INTEREST FOR 2007-08 = 71600
PRINCIPLE AMT. FOR 2007-08 = 10000

CAN I
1- CLAIM INTEREST ON HOUSEING LOAN FOR 71600 IN FY 2007-08
OR
2- CLAIM INTEREST ON HOUSING LOAN 71600/5

PLEASE CLEAR

CA. Aryendra

CA. Aryendra (Expert)
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23 October 2008 You can claim full amount of Rs. 71600;

Note : Interest ***prior to the previous year*** in which the property has been acquired/constructed allows in five equal installments.

Jiwan singh

Jiwan singh (Querist)
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23 October 2008 Whats mean of prier construction period .
if i take a loan from bank on 01.04.07 & house properity constructed completly on 30.09.07.
interest for 2007-08 71600/-
interest for 2008-09 61600/-

what is the interest amt.for fy 2007-08

as i think INTEREST ON PRIER CONSTRUCTION PERIOD WILL BE 71600/-

Please clear

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 October 2008 Pl note the key words' prior to the previous year'.Aryendra is absolutely correct.

CA. C V SURYAM

CA. C V SURYAM (Expert)
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23 October 2008 To be precise, both date of loan taken and occupation of house had taken place in one financial year. Hence, entire interest pertaining to pre-construction period can be claimed deduction in the same year. No need to claim in 5 annual instalments. In fact, I did this 4 years back and no query raised by dept.