DEDUCTION FOR PRECLOSURE INTEREST CHGS
This query is : Resolved
05 December 2007
We know that while Housing Loan is preclosed, there would be preclosure interest charges @ some% of the principal oustanding on the date of pre-closure.
My query is that whether the same can be treated as Interest under House property in the year of sale of house property as it is necessarily a interest cost on the housing loan & deductible under Sec 24.
If YES, please confirm as to whether there are any decided cases on this?
IF NO, Please confirm, whether it can be treated as COST OF TRANSFER of the capital asset (house property) and be taken AS DEDUCTION in computing CAPITAL GAIN
My query is that whether the same can be treated as Interest under House property in the year of sale of house property as it is necessarily a interest cost on the housing loan & deductible under Sec 24.
If YES, please confirm as to whether there are any decided cases on this?
IF NO, Please confirm, whether it can be treated as COST OF TRANSFER of the capital asset (house property) and be taken AS DEDUCTION in computing CAPITAL GAIN
19 March 2008
It cannot be taken as Cost of Transfer.
Cost of transfer means cost necessarily incurred for the purposes of transfer.
In other words but for the cost, transfer would not have taken place and vice versa.
The interest can be claimed as a decution u/s 24 provided it is not penal in nature.
Cost of transfer means cost necessarily incurred for the purposes of transfer.
In other words but for the cost, transfer would not have taken place and vice versa.
The interest can be claimed as a decution u/s 24 provided it is not penal in nature.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Under construction property in ITR
- Building tax payment deduction in rental Income
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- F & O PROFIT REPORTING FOR AY 2026-27
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
