Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Doubt in pre construction interest

Save Share

This query is : Resolved

aditya jalan (Querist)

08 January 2014 In house property, is there a provision for the treatment if construction is completed in the same year in which loan is taken?

CA TSR

CA TSR (Expert)

08 January 2014 If construction of house property is completed in the year of loan taken then as per provisions of income tax act 1961 interest paid is not eligible as Pre-construction period interest. The interest paid to borrower is allowed as deduction under section 24

CA Gunjan Shingavi

CA Gunjan Shingavi (Expert)

10 January 2014 as per my opinion, if the construction of house property is completed in same year of loan taken then assesse can claim deduction of int. for both pre construction period and u/s 24 as well.
but one thing to be consider that the interest for the period of construction only and not for remaining period and deduction u/s 24 is allowed only for period after completion....

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