madhavvan (service) (154 Points)
11 September 2012housing loan taken in 2001-02 for bungalow and repaid in 2010-11 interest paid Rs. 5 lacs. Construction of bungalow completed in March12 another fresh housing loan taken in April 11 for same bungalow whether Pre emi interest is available as deduction from FY 11-12 on interest paid of rs. 5 lacs in 5 equal instalments . The bungalow is let out and interest of new loan has also started.
Aarush
(Delhi)
(1566 Points)
Replied 11 September 2012
in 1st case no.. interest on construction of house is allowable. not for payment of interest part { interest on interest}
in the second case :- if property is let out than interest deduction is not allowable .. dis is for self occupied.
CAclubindia
