Interest & Repayment on Housing Loan in first three years

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2010 Construction of House comenced on 13.04.2008. A loan of Rs. 2000000/- was taken from bank. annual interest of Rs. 200000/- accrued upto 31.03.2009. THe house was completed and occupied on 16.06.2009 and the interest of Rs. 38000/- accrued upto 11.06.2009.

Whether interest of Rs. 200000/- can be claimed in A.Y. 2009.10? if not, what is the provision?

Under thr above circumstances, whether interest exceeding Rs. 150000/- can be claimed in any of the following assessment years or interst claimed can be C/Fd in any following year?

A sum of Rs. 25000/- was deposited in the F.Y. 2008.09. Can deduction u/s 80c be claimed?

Rahul Gupta

Rahul Gupta (Expert)
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28 March 2010 For AY. 2009-10 you can claim deduction of Interest upto maximum of Rs.1,50,000.
Also deduction of repayment of principal of Rs 25,000 can also be claimed in AY 2009-10.

No. Interest exceeding Rs.150,000 for a financial year cannot be claimed in the next financial year.

Rahul Vora

Rahul Vora (Expert)
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29 March 2010 You can claim deduction of interest that has accrued upto the date of completion of house in 5 equal instalments starting from the FY in which house has been completed. In your case, you can claim Rs.238000/- towards interest deduction in 5 equal instalments starting from FY 2009-10.
Total interest including the above can be claimed upto Rs.150000/- only.
Yes you can also claim Rs.25000/- u/s 80C in the FY 2008-09.

CA.Pujah

CA.Pujah (Expert)
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29 March 2010 I would like to differ here.
Though the provisions are quoted correctly to some extent, but the deduction would be as below:
1) pre const intt: Const is completed in FY 2009-10, so intt upto FY 2008-09 is pre const intt, i.e., 2lacs to be deducted, as said, in 5 equal instalment w.e.f FY 2009-10 (AY 2010-11)
2) post acquisition intt is what you pay for the relevant FY 2009-10 onwards.

So for FY 2009-10, your intt deduction would be:40000(i.e.200000/5)+intt from Apr-09 to mar-10

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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01 April 2010 agree with Pujah and continuing that if H.P is self occupied then total interest allowed u/s 24 b would be limited to Rs 150000. in other case, there is no upper limit

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