House property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2015 Dear Experts,

If anyone takes the possession of a house in Sept14 and the pre interest is 150000, then this interest will be divide in 5 year equal proportion to claim the deduction under section 24. Then now my question is that in AY 15-16, he will be eligible to claim the deduction as preinterest for 30000(150000/5) + payment of interest after possession.
Because his rental income will be calculated from Sept 14 for AY15-16 it it is let out.

Please clear. thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 January 2015 Your eligible to claim the above deduction.

CA SONIYA AGARWAL

CA SONIYA AGARWAL (Expert)
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02 January 2015 The pre-construction interest paid for the period prior to the fiscal in which the construction of the property is completed shall be deductible in five equal annual instalments commencing from the fiscal in which the construction of the property has been completed. Accordingly, the deduction towards aggregate interest (including one-fifth of pre-construction interest) can be claimed from the fiscal in which the construction of the property has been completed.
a loan was taken on December 2010 and the construction of the house gets completed on September 20, 2013, in that case pre -construction Interest is taken from December 2010 to March 2013and deduction will be allowed from FY 2013-14.

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