Rajendra Nath Datta (0) (101 Points)
06 March 2010
An assessee takes a Bank loan for construction of a house property on 1.4.04. The date of starting of construction of the house is 1.6.04. The construction of the house was finished on 31.3.08. What will be preconstruction period for claiming deduction on interest on loan u/s 24(b)?
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 06 March 2010
The time between the date on which loan is taken and 31 March of the year immediately before which the property is acquired or construction completed is called the pre-construction period.
Rajendra Nath Datta
(0)
(101 Points)
Replied 06 March 2010
thanks for replying.
then in my question the preconstrcution period will be from 1.4.04 t0 31.3.07? Am I right?? actually i am getting confused wether the preconstruction period will be from 1.4.04 to 31.3.07 or from 1.4.04 to 31.3.08? plz help
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 06 March 2010
Ok, as per the language..
It should be 01.04.04 to 31.03.08... But just wait, let me take confirmation from some reliable source
C.Balaji
(Learner)
(1867 Points)
Replied 06 March 2010
Dear Dhiraj.....
I also feel that it will/should be 31.03.08.......
Amir
(Learner)
(4016 Points)
Replied 06 March 2010
Dear Friends,
Dhiraj Bhai has sited the provision............
So no doubt about it Pre construction period is from 01.04.2004 to 31.03.2007 (& NOT 31.03.2008)
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 06 March 2010
Yes the preconstruction period is from 01.04.2004 to 31.03.2007
C.Balaji
(Learner)
(1867 Points)
Replied 06 March 2010
Dear Amir bhai......
The construction complete on 31.3.08.....so it should be 31.03.08.........why 07.......
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 06 March 2010
Hi amir, yaar i got confirmed...
It should be 01.04.2004 to 31.03.2008
I visited a no. of sites and referred few examples....
But still, if u r sure, then do tell us the source
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 06 March 2010
Dear Dhiraj
You yourself have quoted the law on the same that "the time between the date on which loan is taken and 31 March of the year immediately before which the property is acquired or construction completed is called the pre-construction period". Since construction is completed on 31st March. 2008 the 31st March of the preceeding year which is 31.03.2007 should be taken.
Bala
(Student)
(498 Points)
Replied 06 March 2010
saranraj
(CA FINAL)
(419 Points)
Replied 06 March 2010
DEAR BROTHERS,
PRECONSTRUCTION PERIOD IS THE FINANCIAL YEAR ENDING ON 31ST MARCH OF THE IMMEDIATELY PRECEDING YEAR OF THE FINANCIAL YEAR IN WHICH THE HOUSE PROPERTY WAS COMPLETED.
THE PERIOD IS FROM 01.04.2004-31.03.2007
CMA.Baskar.V
(Cost Accountant)
(400 Points)
Replied 06 March 2010
I agree with Aditya, pre construction period from 01.04.04 to 31.03.2007
Rajendra Nath Datta
(0)
(101 Points)
Replied 06 March 2010
Thanks Friends for clearing my doubt
I have also checked some site in the net. There is a sum. Later on I find that sum. Here is the link.
Go to pg no 75. In pg no 75 you can find it. There is a similar kind of sum.
CAclubindia
