House property

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Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2014 Pls tell me

CASE-I:- If I have taken loan for the construction of house property on 01-04-2011 and construction of house is completed on 05-07-2013, but loan is fully repaid on 10-10-2011 (within one year of loan taken).
Then in this case whether there is any pre-acquisition period whose deductions of intt. i will be getting in FIVE equal instalments starting from the F.Y.2013-2014.

CASE-II:- This case is quite similar to above, but in this case if the house is constructed completely within one year of loan taken but loan is unpaid then also I have to consider pre-acquisition period or just I have to consider intt. for the year 2013-14 for deduction.

whether this house property sections applicable in case I am constructing my office by taking loan.

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 April 2014 case I - yes you will be getting deduction in five equal installments from FY 2013-14.

Case II - in this case the interest upto 31 March 2012 shall be available in five installments wef FY 2012-13. So for FY 2013-14 you shall add the installment to the interest for FY 2013-14 to deduction claim subject to overall limits prescribed (as applicable to self occupied house property ie Rs 1.5 lakhs per annum)

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2014 Sir
I am satisfied with your case-I answer but NOT satisfied with your case-II answer because if the house is completed with in one year of loan taken then in that case no concept of pre-acquisition period will be applicable. we would be able to claim only current year Intt. as dedutions.

Pls Sir check your answer, let me know also.

Thank You

Nikhil Kaushik

Nikhil Kaushik (Expert)

25 April 2014 ok ya..yes if you do complete construction before 31 March 2012..then there wont be any pre-construction interest.

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