24 July 2017
I purchased a under construction property in FY 2013-2014 and since then I started paying EMI of about 29K per month. I go the possession of the flat in Feb 17. Therefore I would like to ask following queries- 1. How do I calculate and claim the preconstruction period interest 2. I live with my Father and hence do not own any house however can I show this new flat as deemed to be let out and claim the complete interest, if yes, then do I need to show the property was let out for entire year or only for 2 months (Since possession received in Feb 17) 3. Can I claim both interest in my FY 16-17 return and if yes, what is the limit 4. I am planning to sell this property, what could be the tax implication
24 July 2017
1. How do I calculate and claim the preconstruction period interest Get the break up of EMIs paid in 2013-14,2014-15,2015-16 - You can arrive at the Pre construction period thus.
2. I live with my Father and hence do not own any house however can I show this new flat as deemed to be let out and claim the complete interest, if yes, then do I need to show the property was let out for entire year or only for 2 months (Since possession received in Feb 17)
You cannot since you own only one property. Deemed ownership is not applicable.
3. Can I claim both interest in my FY 16-17 return and if yes, what is the limit? Yes, you can claim.
Assuming that the house is self occupied, the maximum limit available is Rs.2.00 lacs
26 July 2017
Thanks Sir for the reply and clarity. However I missed to add one important point. I also own one flat jointly with my brother and I pay fixed housing loan instalment for the same. I have been claiming the interest and principal in my earlier years return. In light of this information, can you please guide me on question no 2 & 3
26 July 2017
Thanks Sir for the reply and clarity. However I missed to add one important point. I also own one flat jointly with my brother and I pay fixed housing loan instalment for the same. I have been claiming the interest and principal in my earlier years return. In light of this information, can you please guide me on question no 2 & 3
CAclubindia
