House property - section 24

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2013 As per provisions of Sec 24 , Where property is acquired or constructed with capital borrowed on or after 1.4.99 & such acquisition/construction is completed within 3 years from the end of the financial year in which capital was borrowed - Then, actual interest payable subject to maximum of Rs 1.5 lakhs is the amount of deduction.

Here my doubt is, If the loan was borrowed in 2003 and the construction is complete only in 2008 (ie. the construction period is 5 years from the date of loan borrowed)which exceeds the 3 years as given in the provision.

In this case, will the assessee get 1.5 lakhs exemption u/s 24?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

20 August 2013 In this case the assessee can claim deduction of Rs 30000/ only.
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Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2013 Thanks a lot sir.
Will the answer change if the loan was borrowed during 2003. The construction work started during 2005 and ended in 2008?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

20 August 2013 The construction is required to be completed
within 3 years of borrowing the capital.
.
So, still, the reply remains the same.
.

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2013 Thanks a lot sir. Clear now.

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