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Pre construction interest

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Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2012 The house property was sold within a period of 36 months and hence it attracts short term capital gain tax. However, in the previous IT returns, the loss from house property was claimed each as the loan interest was paid to bank. Similarly the pre construction interest was to be claimed with 5 yearly instalments @ 20% each year. Only 2 instalments of pre-construction interest have been claimed in each year @ 20 % each while computing loss from house property. Now the house is sold and 3 instalments of pre construction interst are left out. Whether these three instalments ( in three years or full balance 60% pre construction interest in 3rd year in which the house is sold) can be claimed as loss from the house property even though now the house is sold to another person.

Amol S Joglekar

Amol S Joglekar (Expert)

30 August 2012 Since the subject matter (House Property) is sold.... there is NO income from house property. Pre construction interest can notbe claimed. IT can not be viewed as ENTITLEMENT.

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