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Can housing loan interest be claimed in the year of sale of

sri.student (student) (144 Points)

16 July 2011

Is housing loan interest allowed as a deduction u/s 24 in the year of sale of property?

Can deduction s.54 can also be claimed?

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4 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 16 July 2011

YES YOU CAN CLAIM,DEDUCTION UNDER SEC 54 DEPEND WHETHER YOU INCURRED SHORT TERM OR LOANG TERM GAIN

ONLY IN CASE LONG TERM CAPITAL GAIN DEDUCTION UNDER SEC 54 CLAIMED

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@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 16 July 2011

yes you can claim...

sec 54 is applicable for house property, there should not be short term capital gain..must be LTCG... new property should be purchase 1 year before or 2 year after or construct within 3 years from the date of sale...

Priya Mehta (CA & CS FINAL Article Assiatant) (219 Points)
Replied 16 July 2011

Originally posted by : Siddharth Bumb
	yes you can claim... sec 54 is applicable for house property, there should not be short term capital gain..must be LTCG... new property should be purchase 1 year before or 2 year after or construct within 3 years from the date of sale...

AGREED.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 16 July 2011

only precaution you have to maintain that you are not going to get exemption from LTCG for the interest claimed u/s 24b, i e. your 24b would be from income source other than LTCG proceeds.