Interest on H.Loan not allowed

Ajay Rajai (Tax Advocate (Consultant) I.T and Documentation of Properties)   (705 Points)

22 January 2011  

Hello Everyone,

One of my friend had directly filed his E-return for A.Y. 2010-11. And simultaneously he had received intimation from cpc bangalore showing demand of tax payable. On going through the intimation, I came to know that cpc had not allowed interest on H.Loan. However my client had filed ITR-1 and rightly showed and claimed interest on H.Loan under the Head "Income from House Property". but cpc has not allowed the interest on H.loan and as a result demand arose. Is Rectification request to be uploaded ? Pls advice as to what to do