House property

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Mihir Kothari (Querist)
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22 December 2013 Why interest on loan taken for construction of house Property is allowed as deduction on accrual basis and not payment basis since chance of assessee defaulting on payment of interest is also there?If he defaults in payment of interest then also he will get deduction for the same u/s 24? Isn't it illogical?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 December 2013 Because income is also taken on notional basis in some cases in house property income..so applying matching concept it is logical.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 December 2013 Still as a welfare major, Govt wants to continue it on accrual basis.
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As a matter of fact, due to emotional attachment with a home we Indians are very careful.
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Due to really a tough financial position, default in Housing Loan Repayment has been observed. But sooner or later the borrower clears the loan.
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