31 May 2013
XYZ Pvt. Ltd. company has pledged FDR with bank for Overdraft limit and such overdraft has been utilized for construction of commercial property. Therefore the company can be able to claim interest on such overdraft u/s 24 of income tax? pls. explain with proper section, circular, notification, case law etc.
16 June 2013
No. interest u/s.24b only allowed the loan purpose clearly mentioned or loan is housing loan, OD taken on pledging FDR cannot be claimed as construction loan.
And also Commercial property construction not covered under House property income, it is Business Income
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