Hi,
Building is under development. Flat purchased and payment made in piecemeal every year. i want to know whether such non refundable advance given to builder for house purchase is allowable as deduction u/s 80C as the cost of purchase or construction.
Urgent.
Regards,
Manoj
i think it would not be allowed as a deduction as the flat has not been purchased..so it is not a cost of house purchase..hence no deduction..
I have a similar situation, having paid advance lumpsum to construction in Nov 2011 expecting a registry and occupation in Oct 2013. Since In this case the advance payments during construction cannot be deducted, however, can these advanced payments retrospectively be applied in the year subsequently when registring? Also how about service taxes, VAT, cess, and paid this year, can we apply them in the year paid?
Thanks. Rahin
CAclubindia
