sir/madam,
one of my friend has taken loanof Rs10lacs. 5 lacs is for purchase of land and 5 lacs is for construction. So whether interest on 5 lacs taken for purchase of land is allowable for deduction under Sec 24b.
2 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 21 December 2012
Yes it will be allowable, becaseu for construction of property, there shud be land available for the said construction. So purchase of land is incidental to construction of property. So loan taken for land will be considered as loan taken for the purchase of property & deduction u/s 24(b) will be allowable.
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