Siji Joy (UM) (40 Points)
05 November 2009If a person received possession( letter is not specified whether complete construction is done/ ready to use) from the builder, and written in the letter like, " Possession given for interior design as desired " . Whether the interest paid on loan is eligible u/s 24.
Satish
(CA Final Student)
(479 Points)
Replied 06 November 2009
The very purpose of possession letter is to prove that the house is actully 'READY FOR USE". Since Completion from local authority is a procedural part & takes lot of time, the best evidence that the house is ready is the possession letter. In your case, the sense of 'possession given on completion' is missing. So it would be difficult to justify on the face of the letter that the house is ready for use. Hence the interest could be claimed u/s 24 in the financial year in which the possession to stay is given by the developer.
Deepak.H
(Consultant CA)
(33 Points)
Replied 13 November 2009
Since you have mentioned that it is no were written in the letter that construction is complete, the same cannot be used for Section 24.
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