Interest on Housing Loan
This query is : Resolved
17 March 2008
A person has raised loan from bank to finance the purchase of a flat. The amount is payable to the builder in installments based on progress made in construction. Registration of the flat will be done in his name after he pays 90% of the purchase price.
The person has paid 75% of the purchase price to the builder till 31 March. The bank has charged interest on the loan amount drawn. Since the person has paid only 75% of the total purchase price the flat is not registered in his name yet.
1)Can he claim deduction u/s 24 for interst paid eventhough the house is not registered in his name?
2)If the answer to above question is 'No', is it possible to claim deduction for interest paid before registration, during the financial year when the registration takes place?
The person has paid 75% of the purchase price to the builder till 31 March. The bank has charged interest on the loan amount drawn. Since the person has paid only 75% of the total purchase price the flat is not registered in his name yet.
1)Can he claim deduction u/s 24 for interst paid eventhough the house is not registered in his name?
2)If the answer to above question is 'No', is it possible to claim deduction for interest paid before registration, during the financial year when the registration takes place?
17 March 2008
(1) No
(2) Interest relating to the period preceding the FY in which Registration is completed will be aggregated and allowed as a deduction in five equal installments beginning from the year in which the construction is completed.
You may please visit https://www.apnaloan.com/taxtips/home-loan-india/taximplicationonpreemi.html
(2) Interest relating to the period preceding the FY in which Registration is completed will be aggregated and allowed as a deduction in five equal installments beginning from the year in which the construction is completed.
You may please visit https://www.apnaloan.com/taxtips/home-loan-india/taximplicationonpreemi.html
17 March 2008
ANSWER BY SH .K V.SUBBA RAO IS CORRECT
17 March 2008
Yes. The answer given by Mr Rao is absolutely correct
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
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Specified Profession
- SALE BILL AGAINST GOODS RETURN
- GST Registration Horse racing
- Plot of land. Cost of Acquisition
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
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
