INTEREST ALLOWED UNDER HOUSE PROPERTY
This query is : Resolved
18 December 2007
ONE PERSON BORROWED A SUM OF RS.300000 ON 1/6/1998 ON INTEREST @ 12% P.A. TO CONSTRUCT HOUSE PROPERTY. AS THE HOUSE PROPERTY WAS STILL UNDER CONSTRUCTION, HE BORROWED ANOTHER SUM OF RS. 200000 ON 1/4/1999.@ 12% P.A. THE PROPERTY WAS COMPLETED ON 31/8/2002 AND "IF" IT WAS SELF-OCCUPIED W.E.F. 1/9/2002. THE FAIR RENT OF THE HOUSE IS 10000 P.M.
Q.1 ] WHAT WILL BE THE INCOME UNDER THE HEAD INCOME FROM HOUSE PROPERTY FOR THE A.Y. 2008-09.
Q.2 ] WHAT WOULD BE INCOME IF THE AMOUNT BORROWED ON 1/4/1999 WERE RS. 1200000 INSTEAD OF RS. 200000.
Q.3 ] HOW MUCH INTEREST CAN BE DEDUCTED FROM "NAT ANNUAL VALUE" (WITH KEEP IN MIND THAT UPTO 1/4/1999 ANY PERSON CAN GET DEDUCTION OF INTEREST UPTO 30000
IN CASE OF SELF OCCUPIED PROPERTY).
THIS PROPERTY IS ONLY LET OUT [LOP].
Q.1 ] WHAT WILL BE THE INCOME UNDER THE HEAD INCOME FROM HOUSE PROPERTY FOR THE A.Y. 2008-09.
Q.2 ] WHAT WOULD BE INCOME IF THE AMOUNT BORROWED ON 1/4/1999 WERE RS. 1200000 INSTEAD OF RS. 200000.
Q.3 ] HOW MUCH INTEREST CAN BE DEDUCTED FROM "NAT ANNUAL VALUE" (WITH KEEP IN MIND THAT UPTO 1/4/1999 ANY PERSON CAN GET DEDUCTION OF INTEREST UPTO 30000
IN CASE OF SELF OCCUPIED PROPERTY).
THIS PROPERTY IS ONLY LET OUT [LOP].
SHAMIM HAMEED
(Expert)
27 December 2007
If the property is self occupied,
Interest deductible u/s 24(1) is calculated as follows.
300000*12/100=36000 limited to 30000
200000*12/100= 24000
Total interest = 54000
In case (2)
300000*12/100=36000 limited to 30000
1200000*12/100=144000 (limited to 150000-30000=120000).
Therefore total interest=150000
In case (3) the actual interest calculated can be taken as deduction without lomitation. i.e. 36000+24000=60000 in first case and 36000+144000=180000 in second case.
in all the cases preconstruction period interest is not available because 5 years have elapsed.
Interest deductible u/s 24(1) is calculated as follows.
300000*12/100=36000 limited to 30000
200000*12/100= 24000
Total interest = 54000
In case (2)
300000*12/100=36000 limited to 30000
1200000*12/100=144000 (limited to 150000-30000=120000).
Therefore total interest=150000
In case (3) the actual interest calculated can be taken as deduction without lomitation. i.e. 36000+24000=60000 in first case and 36000+144000=180000 in second case.
in all the cases preconstruction period interest is not available because 5 years have elapsed.
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
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Ito add credit side of bank
- GSTR9 Annual Return
- Employee secondment
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Rent agreement of House of deceased person
- Applicability of tax on invoice
- Import of Capital Machine
- Capital gain on commercial property and investment in residential property
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- 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?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
