An open plot was purchased in Last Fin Yr 17-18 and in FY 2018-19 construction work was done financed through Loan.
At what value the Building will be shown in Balance Sheet?? Will it be shown at its historic value or Purchase Price + Construction Exp incurred??
Still construction is in progress and will be completed in next FY 2019-20.
please advice.
3 Replies
Kapadia Pravin
(17259 Points)
Replied 26 August 2019
Value of building will be plot cost + construction cost + interest on loan paid till the date building is put to use
Reshma Golani
(student)
(190 Points)
Replied 27 August 2019
As it was Construction Loan , can its interest be claimed as deduction under HBA interest??
Kapadia Pravin
(17259 Points)
Replied 28 August 2019
After completion of the building you can take interest deduction of 1/5th every year (of inerest accumulated till it's completion)
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