07 October 2012
Please advise how to treat the interest expense on loan taken for purchase of land, on which a building has to be constructed. In this case the building construction is yet to start due to clearance issues.
07 October 2012
1. Interest on loan taken for purchase, construction, repairs, renovation, renewal etc of house property is allowed for deduction without any limit and it is allowed from the financial year in which it is purchased or construction is completed. 2. Interest for pre accquisition or pre construction period is allowed in five equal installments starting from the year in which construction is completed.
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