Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
10 May 2014Dear Friends
i would like to discuss one case given below:
Mr. X Purchase a plot of land in 2010 for INR 50 Lac with the borrowed money 20 lac from bank.
in last 4 year Mr. X has paid interest on loan say 5 lac
Query: will this interest amount Rs. 5lac be added to cost of plot or will it be a simply drawing
because no deduction is available u/s 24 b for this interest as plot is not a residential house.
To my mind it should be added to cost of plot for calculating capital gian if said plot sold.
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 10 May 2014
Your query is not clear. Please add more details as to whether let out or self occupied. And to add " House property " means any land or building appuertenant thereto. There is no requirement for reidential or commercial usage. Waiting for your reply with more insights on to your query. Regards
RAJ CHETAN DOSHI
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 11 May 2014
| Originally posted by : Raj C Doshi | ||
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Your query is not clear. Please add more details as to whether let out or self occupied. And to add " House property " means any land or building appuertenant thereto. There is no requirement for reidential or commercial usage. Waiting for your reply with more insights on to your query. Regards RAJ CHETAN DOSHI |
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as i told in my original query that it is a "plot of land" . it is not being used my me or nor let out to any one.
no question of building or land appartunent there to because there is no building attached with land.
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 12 May 2014
anybody to answer
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 12 May 2014
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 12 May 2014
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 12 May 2014
Dear Doshi
i would like bring you attention to following:
1. we can not take benefit u/s 80c for principal amount repaid because this is not a residential house property.
2. Yesterday i came to know one case law "CIT vs. Mithlesh Kumari (1973) 92 ITR 9 Del"
where highcourt says that can capitalise such interest with cost of plot for capital gain purpose in case of sale of plot.
let me know if i am wrong
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 13 May 2014
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 13 May 2014
CAclubindia
