I tax
This query is : Resolved
12 January 2014
Dear Friends Pl clarify how to treat the interest during construction of house if the house is completed with the same financial year of taking loan from bank. Wheather to take full interest for exemption or it should be at 1/5 each for 5 years.
12 January 2014
Dear tax payer, As per Section 24 of Income Tax Act you get full amount of interest paid or payable to borrower as deduction.
For your understanding i am giving u one small example -
Loan 100000/- int. rate 12% p.a. Loan taken on 01.04.2012 and construction started on 03.04.2012 construction completed on 05.10.2013
Interest paid during FY 12-13 is 12000 and during FY 13-14 is also 12000 (assume)
Then interst allowed in IT return for the AY 1$-15 is as follows :
Pre-construction interest (12000/5 FY 12-13) 2400.00 and
General interest on housing loan 12000
Total interest allowed U/s. 24 for the asst. year 14-15 is 14400/- (i.e. 12000+2400) as calculated above.
For your understanding i am giving u one small example -
Loan 100000/- int. rate 12% p.a. Loan taken on 01.04.2012 and construction started on 03.04.2012 construction completed on 05.10.2013
Interest paid during FY 12-13 is 12000 and during FY 13-14 is also 12000 (assume)
Then interst allowed in IT return for the AY 1$-15 is as follows :
Pre-construction interest (12000/5 FY 12-13) 2400.00 and
General interest on housing loan 12000
Total interest allowed U/s. 24 for the asst. year 14-15 is 14400/- (i.e. 12000+2400) as calculated above.
12 January 2014
Preconstruction period ends with the prior March from the year of construction/acquisition completed, since your case same year construction completed, preconstruction interest is Nil. you can take normal deduction u/s.24b
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- ITDS U/S.194T of Firm
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- EXPORT COMMERCIAL INVOICE HSN CODE
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Cash balance limit and property purchases limit
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
