22 May 2012
Case : A residential plot of land is purchased by Individual (ROR) through bank loan 75% and own money 25% in MAY 2012. Then construction loan for this plot is taken from same bank in June 2012 and constructions is completed by DEC 2012.
Bank provides to borrower two certificates showing principal and interest portion repaid on two loan accounts under home loan scheme.
Can interest portion of EMI's paid on two separate loans be claimed as deduction u/s 24(b)?
What is treatement of principal portion repaid during the FY 2012-2013?
24 May 2012
Sec 24(b)says... where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital......how should we meant the word acquired and property here....does acquired cover plot purchase and then constructions completed from two bank loans.