Claiming EMI for Sec. 80C & 24 & Date for Exemption

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Samir

ACA

113 Points Joined March 2010

(1) Building in last stage of Construction (i.e. Fininshing - Final coat of External Color), Got possession of Flat from Builder on 16th March 2010 Gudi padva for doing Puja & to carry out Interiors (Still Rs. 2,50,000/- to be paid to Builder). The Possession Letter specify's that Possession of Flat is being handed over to the purchaser to carry out Interiors as per his request. Can we claim Loan EMI's paid in F.Y 2009-2010 in the ITR's to be filled of F.Y 2009-2010?

(2) An Assessee booked Flat on 2nd September 2009, executed Agreement on Dt. 25-12-2009, Regd. the same on Dt. 19-01-2010. Possession expected in June 2010. Now after getting the possession of New Flat, he will sell out his old Flat, there might be some Capital Gains on Sale of Old Flat. But he can very well claim Exemption that he purchased “Flat one year ago”. What date should be considered for calculating the ONE YEAR time frame? Will he have to get the Sale Deed of his old flat Executed or Registered before the said reckoning date?

Replies (2)

Samir

ACA

113 Points Joined March 2010

Can anyone Reply Plz......

Amir

Learner

4016 Points Joined December 2009

Dear Sir,

Answer to ur First question is in affirmative if construction has been completed and only minor things are left which does affect the Building to be used for which it was constructed then - YES, benefit of loan can be claimed in the year itself.

Regarding second question - First let me tell u that the same question was posted few days back but no consensus could be reached.......although the reply given by Rajat Sir seems to be logical.......Link to that discussion is as below -

/forum/date-of-acqusition-for-house-property-73646.asp

Further to me, what is the date when it can be said that property is acquired/transfered/bought/sold is a question of fact and not a question of law so it has to be decided based on the facts of each case...........

I can share what my understanding says -

In agreement - There is a date which speaks about the date from which the agreement takes effect Now this date is invariably d same as of signing of the agreement .....For me this is d crucial date.

But then under Income Tax, Transfer is treated even in the absence of agreement, in that case "Date of Possession" becomes the relevant date.