1) Do we have the option to capitalized the Pre-Construction interest, in case we are not taking deduction of Pre-Construction Interest in five consecutive Years.
2) Can an employer give the deduction of Pre-construction interest under House Property head, before the completion of construction.
The pre-construction interest will be capitalized till the construction is complete. Employer can not allow deduction unless the house porperty is fully constructed.
Can we add the capitalized Pre construction interest to the cost of House Property, If we Don't want to take deduction U/s 24 of the IT Act 1961, in five (5) consecutive years......
05 August 2015
The section specifically says, while computing the income under house property, the deduction of pre construction has to be claimed the the five consecutive PYs beginning from the PY in which the construction is complete.
I have never seen a practice of capitalizing the pre-interest to the cost of asset. but let me tell you, you may do so.
CAclubindia
