Pre Construction Interest Deduction

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Raj Chitroda (Querist)
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14 December 2020 Dear Experts,

Mr. A Constructed & completed Commercial complex in three year by taken Term Loan from bank against the Property and Loan EMI started from the beginning of construction.

Now my question is that Mr A has paid Interest up to completion of construction of Commercial property is eligible deduction u/s 24B in five equal installments after the completion of Complex or pre construction deduction is only for Residential House Property ?

Does pre Construction Loan Interest eligible deduction against Commercial Property Rent Income ?

Thanks & Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 December 2020 Interest up to completion of construction of Commercial property is eligible deduction u/s 24B in five equal installments after the completion of Complex if rental income is shown as income from house property.

Raj Chitroda

Raj Chitroda (Querist)
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15 December 2020 Thanks for your valuable reply but sir my point is,
Deduction allowable only to Residential Property or Commercial Complex Property or both ? my consultant advise me that Pre Interest not eligible for Commercial Property it is true ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 December 2020 Yes, it's true if you show comercial complex income under business.

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