31 July 2011
please give me the answer within two days or mail me at rashmi.kalindi@gmail.com
Arvind commenced construction of a residential house intended exclusively for his residence, on 1.11.2008. He raised a loan of `5,00,000 at 16 per cent interest for the purpose of construction 1.11.2008. Finding that there was an over-run in the cost of construction he raised a further loan of `8,00,000 at the same rate of interest on 1.10.2009. What is the interest allowable under section 24, assuming that the construction was completed by 31.3.2011?
31 July 2011
Interest will be allowed on the both loans. Interest incurred during the pre construction period wil be allowed in equal five installments, claim it from the previous year in which the house is ready to use. Interest allowable for post construction period will be restricted to Rs.150,000
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