House property

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2011 a person alsready has one self occupied house property in his name. he purshases the another house property but it is under construction yet.
the new property purchased is taken on loan .

Can the benefit of interest and principal repayment be taken in the return of current FY by treating this new property as Self occupied property.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 July 2011 On completion of the construction only you can claim the interest. Till that it will be accumulated.
It can be written off equally in five successive AYs after the construction gets completed.

U/s 80C, for the repayment of loan, deduction can be claimed as per my view.

However, some of the experts may have different view and opine that on completion only it can be claimed.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 July 2011 Agree with Mr.Paras Bafna view

On completion of house property only we can start claim the interest deduction till then interest will be accumulated as pre construction interest and can be claimed in 5 equal installment

in your case one person cannot claim more than one property as self occupied

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