SHUVRO ( (WANT TO LEARN) ) (175 Points)
24 April 2010let us consider that owing to good mutual relations a person managed to draw HB loan from a bank 4 years after he gets posession of the flat.i.e date of posession is 2002 and date of loan taken is 2006.In this circumstances can he claim deduction u/s 24b?
he argues that the flat was taken on emi and due to shortage of money he has to take the loan for clearing off the liability, in this way the loan was connected to purchase of flat.
looking forward to a quick reply..................
Nicky
(Chartered Accountant)
(245 Points)
Replied 24 April 2010
See if it can be established the said loan is a lon taken to replace an existing liabilty which had been taken to obtain the house in that case yes he can claim deduction u/s 24b
SHUVRO
( (WANT TO LEARN) )
(175 Points)
Replied 24 April 2010
thnkx nicky for ur quick response
but as far as I know the law tells that if a loan is taken to settle any former loan on house prop. then only u can claim sec 24b.(but it this case it was initialy self financing) further ur view tells me that if I purchase a house in year 2002 for 15 yrs emi and in 2012 i take a HBL and connect it with the purchase of house way back in 2002, i ll be eligible for 24b.is it so? (remember that the emi s were being given out of self financing)
Nicky
(Chartered Accountant)
(245 Points)
Replied 24 April 2010
That 's precisely what I meant to establish that it is replacing a libilty..
If the EMI's are self generated then where is teh question of replacing I guess it wont be allowed..
CAclubindia
