Income from House property

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VINITHA RAJESH (Querist)
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27 July 2010 An assessee purchased an apartment by taking a housing loan. The construction of the apartment got over in December 2009. The house after the interior works (loan do not apply for interior works) were ready for occupancy by Mar 10. The house was let out from April 2010.

Please advice on the amount of deduction that can be claimed as per Sec 24(b)on the interest on borrowed capital

Ca Aashish Upadhyay

Ca Aashish Upadhyay (Expert)
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27 July 2010 Interest on pre-construction period is deductible in five equal installments.

Ths first installment is deductible in the year in which the construction of the house is completed.

find out the date of Borrowing e.g 15.6.2007
find out the date of completion of construction e.g 10.03.2010

Pre construction period will be 15.06.07 to 31.3.2009.
for the period 1.04.2009 to 31.3.10 you can claim full interest for the rest 1/5th is admissible.

caaashishupadhyay@gmail.com

srinath

srinath (Expert)
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27 July 2010 agree with expert

VINITHA RAJESH

VINITHA RAJESH (Querist)
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27 July 2010 But the apartment is let out only in April 10. During the year 2009-10 (from Jan 10-Mar 10) it is vacant. So is it possible to claim the full interest or the limit of Rs. 1,50,000/- applies.

Also advice whether the 1/5th of the interest is included in Rs. 1,50,000/-

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 July 2010 yes. interest can be claimed based on the status of the property (SOP or LOP) along with separate deduction of 1/5 th of the preconstruction interest

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