House property and interest on deposits
This query is : Resolved
03 August 2011
A. Interest on Loan paid for buying the Property
I propose to buy a residential property in this regard please answer my following queries:
1. If the construction is not over before March-2012 can i claim the registration cost under Sec.88.
2. If i will borrow a loan and taking the property possession in March-12 can i claim the set off against my salary the loan interest.
3. Is it necessary that i have to submit the possession certificate to my employer.
B. Fixed Deposit:
1. I have opened some fixed deposits with nationalize bank against my surplus income after paying tax. The TDS is deducted on the interest by the bank.
Now i want to close the same for making the payment to my builder towards advance which can be treated as margin money (my share of contribution for loan purpose).
Is the interest accruing till the date of closure is taxable during this financial year or can i claim exemption on the same since the same is reinvested in property.
In case of pre-closure of deposits the bank will deduct 1% of interest towards pre-closure. There will be nexus between the accrued interest till last year and the one which i am going to get while closing the deposits. Can i claim set off for the same against my salary during this year.
Regards
Kalyan
I propose to buy a residential property in this regard please answer my following queries:
1. If the construction is not over before March-2012 can i claim the registration cost under Sec.88.
2. If i will borrow a loan and taking the property possession in March-12 can i claim the set off against my salary the loan interest.
3. Is it necessary that i have to submit the possession certificate to my employer.
B. Fixed Deposit:
1. I have opened some fixed deposits with nationalize bank against my surplus income after paying tax. The TDS is deducted on the interest by the bank.
Now i want to close the same for making the payment to my builder towards advance which can be treated as margin money (my share of contribution for loan purpose).
Is the interest accruing till the date of closure is taxable during this financial year or can i claim exemption on the same since the same is reinvested in property.
In case of pre-closure of deposits the bank will deduct 1% of interest towards pre-closure. There will be nexus between the accrued interest till last year and the one which i am going to get while closing the deposits. Can i claim set off for the same against my salary during this year.
Regards
Kalyan
07 August 2011
A. Interest on Loan paid for buying the Property-
Q-1. If the construction is not over before March-2012 can i claim the registration cost under Sec.80C.
Registration cost is allowed as deduction under Section 80C which is strictly on payment basis. In my view, registration of property is done at the time of possession. So in the next year i.e. in FY 2012-13 , when the property will be completed you can register the property in your name and get the benefit.
Q-1. If the construction is not over before March-2012 can i claim the registration cost under Sec.80C.
Registration cost is allowed as deduction under Section 80C which is strictly on payment basis. In my view, registration of property is done at the time of possession. So in the next year i.e. in FY 2012-13 , when the property will be completed you can register the property in your name and get the benefit.
07 August 2011
2. If i will borrow a loan and taking the property possession in March-12 can i claim the set off against my salary the loan interest.
Ans- You can claim Interest upto 1.50 lac and Principal repayment alongwith other savings/investments made by you U/s 80C , Upto 1.00 Lac.In this situation you can claim Registration Fee also. But the Limit of Rs 1.00Lac is fixed.
You can set off the Interest against your salary income.
Ans- You can claim Interest upto 1.50 lac and Principal repayment alongwith other savings/investments made by you U/s 80C , Upto 1.00 Lac.In this situation you can claim Registration Fee also. But the Limit of Rs 1.00Lac is fixed.
You can set off the Interest against your salary income.
07 August 2011
3. Is it necessary that i have to submit the possession certificate to my employer.
Reply-
If you want to increase your Salary TDS amount , you may not give.
.
Employer will deduct TDS without considering the benefits of Housing Loan.
.
So it is advisable to give him a copy of PC.
Reply-
If you want to increase your Salary TDS amount , you may not give.
.
Employer will deduct TDS without considering the benefits of Housing Loan.
.
So it is advisable to give him a copy of PC.
07 August 2011
B. Fixed Deposit:
Is the interest accruing till the date of closure is taxable during this financial year or can i claim exemption on the same since the same is reinvested in property.
Reply- It is taxable.
In case you make payment against any amount due under a self financing scheme or other schem of development authority , housing board etc. then your proposition would be considered.
Is the interest accruing till the date of closure is taxable during this financial year or can i claim exemption on the same since the same is reinvested in property.
Reply- It is taxable.
In case you make payment against any amount due under a self financing scheme or other schem of development authority , housing board etc. then your proposition would be considered.
07 August 2011
In case of pre-closure of deposits the bank will deduct 1% of interest towards pre-closure. There will be nexus between the accrued interest till last year and the one which i am going to get while closing the deposits. Can i claim set off for the same against my salary during this year.
Reply-
You will earn 8% Interest and 1 % out of it will be deducted. Overall you may receive 7% Interest.
Take the interest what ever is received
by you. It will automatically adjust in the interest income itself and you would not require to claim further set off against any other income.
However if you receive only Rs 1000/ as interest on FDR of Rs 10000/-(Total amount Recd 11000) whereas you have already shown Rs 1350/- as accrued interest in the last year, such amount can be set off against salary income.
.
Reply-
You will earn 8% Interest and 1 % out of it will be deducted. Overall you may receive 7% Interest.
Take the interest what ever is received
by you. It will automatically adjust in the interest income itself and you would not require to claim further set off against any other income.
However if you receive only Rs 1000/ as interest on FDR of Rs 10000/-(Total amount Recd 11000) whereas you have already shown Rs 1350/- as accrued interest in the last year, such amount can be set off against salary income.
.
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