pre construction period interest on housing loan

This query is : Resolved

Jiwan singh (Querist)
Follow

23 October 2008 Dear all

I TAKE LOAN FROM BANK ON 01.06.07 (2007-08) FOR RESIDENCE HOUSE , RESIDENCE HOUSE COMPLETED ON 01.02.08 , WHICH AMOUNT I CLAIM FOR INTEREST ON HOUSEING LOAN ?

INTEREST FOR 2007-08 = 71600
PRINCIPLE AMT. FOR 2007-08 = 10000

CAN I
1- CLAIM INTEREST ON HOUSEING LOAN FOR 71600 IN FY 2007-08
OR
2- CLAIM INTEREST ON HOUSING LOAN 71600/5

PLEASE CLEAR

CA. Aryendra

CA. Aryendra (Expert)
Follow

23 October 2008 You can claim full amount of Rs. 71600;

Note : Interest ***prior to the previous year*** in which the property has been acquired/constructed allows in five equal installments.

Jiwan singh

Jiwan singh (Querist)
Follow

23 October 2008 Whats mean of prier construction period .
if i take a loan from bank on 01.04.07 & house properity constructed completly on 30.09.07.
interest for 2007-08 71600/-
interest for 2008-09 61600/-

what is the interest amt.for fy 2007-08

as i think INTEREST ON PRIER CONSTRUCTION PERIOD WILL BE 71600/-

Please clear

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

23 October 2008 Pl note the key words' prior to the previous year'.Aryendra is absolutely correct.

CA. C V SURYAM

CA. C V SURYAM (Expert)
Follow

23 October 2008 To be precise, both date of loan taken and occupation of house had taken place in one financial year. Hence, entire interest pertaining to pre-construction period can be claimed deduction in the same year. No need to claim in 5 annual instalments. In fact, I did this 4 years back and no query raised by dept.