Can an assessee claim interest on loan obtainined for construction of house, where the construction is not yet started but just only vacant land is present????
Ramanujam R (no) (48 Points)
11 July 2009Can an assessee claim interest on loan obtainined for construction of house, where the construction is not yet started but just only vacant land is present????
pankaj
(International Tax consultant)
(66 Points)
Replied 11 July 2009
yes under section 24b assessee can claim deduction for interest on loan if the purpose of loan is of housing.However interest is allowed in the year of completion of house by accumulating interest for pre construction years before the year of completion in 5 equal installments from the year of completion.However interest for the year of completion will be allowed in that year itself.well I am very much sure about it .
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