Deduction u/s 24 (b)

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Rahul Shelke (Querist)
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12 August 2011 Dear Experts,

Please help me with following query:
I have purchased the flat on 21-05-2010 by paying Rs. 250000/- as booking amount and after a month paid Rs. 1650000/- through housing loan. I moved in to my new house on 05-03-2011 but the possession letter issued by the builder dated as 12-04-2011.

Since date of possession and the date of borrowing falls in the same period I claimed the entire interest for the F.Y. 2010-11 as current year interest. In the interest certificate bank has mentioned first 3 EMI as Pre-EMI (Bank Loan Repayment starts from 07-07-2010).

Now please let me know whether due to builders possession letter entire interest for the F.Y. 2010-11 will be termed as pre-construction period interest? since I don't have any documentary proof other than my electricity bill which will show power consumption.

I am terribly confuse. Please help with the correct interest claim u/s 24 (b) for the A.Y. 2011-12.

Thank you.
Regards,
- Rahul

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 August 2011 Since the date of possession falls on 12/4/2011, entire interest up to 11/4/2011 should be considered as pre construction period interest and can't be claimed in financial year 2010-11 u/s 24(b). That amount can be claimed under the said section in five equal instalments from financial year 2011-12.

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