Income from house property
This query is : Open
28 July 2014
Respected Sir/ Madam
I have a question regarding house property income.
A person has a plan of constructing a 5 storey building.
He has taken loan and completed only ground floor using the entire loan amount.
Now a bank has taken the fully complete ground floor on rent.
The owner has not taken any further loan or started any further activity for construction of remaining floors.
Now my question is whether the building should be treated as incomplete or owner can take deduction u/s 24(b) ?
Please give me suggestion and please give me related case law, if any.
Regards
Pushkar Mitra
I have a question regarding house property income.
A person has a plan of constructing a 5 storey building.
He has taken loan and completed only ground floor using the entire loan amount.
Now a bank has taken the fully complete ground floor on rent.
The owner has not taken any further loan or started any further activity for construction of remaining floors.
Now my question is whether the building should be treated as incomplete or owner can take deduction u/s 24(b) ?
Please give me suggestion and please give me related case law, if any.
Regards
Pushkar Mitra
28 July 2014
Interest for preconstruction period is allowable as deduction on completion of the construction. This pre-construction period would be starting from borrowing of funds to the point completion of the construction. In your case construction is already complete as it has been occupied by bank as tenant. The fund which was borrowed for the construction of the specified portion (Ground Floor) has been completed and thus it would not be incomplete construction. Owner can claim deduction under section 24(b).
28 July 2014
Interest for preconstruction period is allowable as deduction on completion of the construction. This pre-construction period would be starting from borrowing of funds to the point completion of the construction. In your case construction is already complete as it has been occupied by bank as tenant. The fund which was borrowed for the construction of the specified portion (Ground Floor) has been completed and thus it would not be incomplete construction. Owner can claim deduction under section 24(b).
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
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Capitalgain tax purposes for valuation report compulsory
- Oct 2025 Invoices
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Import of Software Service.
- TDS on Fixed Assets purchased
- TAX AUDIT ON PROFESSIONAL INCOME
- GST on Renting godown to KFCSC for Storage of Raagi
- Capital Gail Exemption Certificate
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
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
