15 April 2009
I had purchase a house 3 years back when it was under construction on housing loan. Since property was under construction and possession not received I did not pay any EMI. I have now received the possession in this financial year and there is Pre EMI interest accrued on the home loan. I intend to sell the property in this financial year for which there is capital gain. My question is that is it possible to set off the loss due to Pre EMI interest against capital gain in current financial year.
16 April 2009
That interest you can either take as deduciton in five equal instalments as pre-construction interest or if you sell the property the interest will be added in the cost of acquisition.
CAclubindia
