Interest deduct before construct house property

Save Share

This query is : Resolved

Vipin Rathi (Querist)

12 July 2013 If housing loan instalment of a single property (owned by husband and wife jointly) paid by husband and wife both and Loan interest is more than 150000/-. How much interest is eligible for deduction for each of them? i mean if the interest is 154000/- then both husband and wife can claim 77000/- or 50% of the max. limit i. e. 75000/- in their individual return?

AND HOUSE PROPERTY DOES NOT CONSTRUCT. IT IS ONLY WORK IN PROCESS AND LOAN INSTALMENT IS PAID Rs. 25000. from feb. 2013

loan taken 15 Jan. 2013 and construction start 31 Jan. 2013.

Rupesh Jain

Rupesh Jain (Expert)

12 July 2013 if loan repayment is made by both equally then you can claim 50% -50% otherwise in loan proportion .
and u/s 24 interest on housing loan will allowed on self occupied
after construction of house you can claim prior period intt in 5 equally installment with current year intt.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

12 July 2013 When construction is not completed interest can not be claimed as deduction.
.
It has to be accumulated and claimed 1/5th every year from the year of completion of construction.
.
The limit is 150000/- for each of the co-owner. So Maximum Deduction of Rs. 300000/- can be availed by the two co-owners subject to the actual interest amount.
.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now