banner_ad

DEDUCTION FOR PRECLOSURE INTEREST CHGS

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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
Profile Image

kartik_somu

Profile Image

kartik_somu (Expert)
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details