Intrest of housing loan
This query is : Resolved
19 August 2011
Suppose we had puchase a house on loan and house is under construction and builder will give the possessiion after two year and my EMI starts.
In that case what will be tratment of Intrest ??
In that case what will be tratment of Intrest ??
19 August 2011
That interest will be allowable from the year in which construction is complete in 5 equal instalments.
19 August 2011
Interest can not be claimed until the construction is completed.
It will be accumulated and can be claimed 1/5 th every year in subsequent 5 AYs.
Example-
You took a housing loan on 1.6.2009. Interest for FY 2009-10 60000/ Interest for
FY 2010-11 is , say 90000. Total Interest
is 150000/-.
Now construction gets completed on 1.09.2011.
Interest from 1.4.11 to 31.08.11 is 30000
Interest from 1.09.11 to 31.03.12 is 45000
1.In Current years you will claim
full FY's interest i e 30000+45000=75000
.
2. In respect of accumulated interest of 150000/ you can claim 1/5 th of it i.e. 30000.
.
3. Total Deduction for Interest U/s 24 75000+30000=105000 For AY 2012-13.
.
4. No deduction in the AY 2010-11 and Ay 2011-12.
It will be accumulated and can be claimed 1/5 th every year in subsequent 5 AYs.
Example-
You took a housing loan on 1.6.2009. Interest for FY 2009-10 60000/ Interest for
FY 2010-11 is , say 90000. Total Interest
is 150000/-.
Now construction gets completed on 1.09.2011.
Interest from 1.4.11 to 31.08.11 is 30000
Interest from 1.09.11 to 31.03.12 is 45000
1.In Current years you will claim
full FY's interest i e 30000+45000=75000
.
2. In respect of accumulated interest of 150000/ you can claim 1/5 th of it i.e. 30000.
.
3. Total Deduction for Interest U/s 24 75000+30000=105000 For AY 2012-13.
.
4. No deduction in the AY 2010-11 and Ay 2011-12.
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
- TDS 194-T applicability
- Fixe term employment
- Is any professional CA is here please reply
- GST ITC REVERSE
- Regarding Applicability of Tax Audit u/s 44AB
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Section 50-fixed asset-->building ceases to exist
- Withdrawal in cash from partners capital account by partner
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Consolidated financials
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- 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
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
