Carry forward of Loss on House Property after Sale of House

hiiiiiii Ayushraj

you can carry forward the said Accumalted loss for the reaming yrs.

but i have the doubt in the claim of the pre-construction intrest

lets see waht other said on this question

Can the Assessee claim 1/5th Interest u/s 24(b) for another 3 years even after the property is sold?

the act does not restrict the claim if the house is sold before.logically pre construction period interest is a part of the INTEREST element of the loan.Once the post construction interest is not disallowed hence the pre construction period interest must also not be disallowed.

Dear Ayushraj,

Loss under head House Property can be carried forward after the sale of House or Not - YES, because No such conndition is prescribed to carry forward Loss (Its like the same way as PGBP loss can be carried forward after the discontinuance of Business)

As far as Deduction on account of remaining instalments of preconstruction period is concerned - NO, it will not be allowed simply because - Deduction u/s 24 is allowed in computing the Income from a property (individually for each property) - and once it is sold there is no property in respct of which Income can be computed.

Dear Ayushraj...........

First of all thanks for asking a good query.........

Loss under HP can be carried forward even after the sale of HP........i think there is no restriction........

Preconstruction deduction - i will go with Amir brother......since there is no property exists no ded. will be allowed...

Dear Amir brother......

I have a query.....

Incase A has two houses X and Y....sold X - 2 inst. pre const. int. remaining.....Is A allowed ded of pre const int of X in  Y..........????

Hi Brother,

Just in anticipation of this doubt I tried from my side to make it clear already by mentioning "a property (individually for each property) 

Anywaz - No it will not be allowed..

Income has to be first computed in respect of each property individually.

Bhai, Pls appreciate the difference between "Deduction (of an Expense)" and "Loss"

Deduction - An expense which is allowed only out of that Income for which it is spent.

Loss - It is the excess of Deduction over Income.

In simple terms it can be said that "Losses can be setoff but Deduction cannot" 

amir sir 

tussi gr8 ho

sir plz clear my doubt.U said right ly that preconstruction period interest is a sort of deduction.Under any circumstances can a amount of deduction exceed the total income from that particular source? If yes, then in which concept?Like it is not applicable to 80C, 80D etc.

If no , then how is the preconstruction period interest deducted from NIL income from a self occcupied house?

I think u got me?

Dear Survo,

Deduction can exceed Income, Only then we arrive at Loss.

So where deduction is being claimed in course of computing Income then it can exceed the amount of Income.

But once Income is computed and now u r in the process to compute Taxable Income then it cannot exceed the amount of Income.

Respected amir sir

Plz have a look at this link from wiki.  https://en.wikipedia.org/wiki/Tax_deductions It says that :  They are variable amounts that you can subtract, or deduct, from your gross income.^{[1That means first the income is to be computed thn the deduction is to be given to effect.This is not the case with House Property, where the deduction u/s 24 is deducted from GAV instead of the income frm HP.Please do clarify, is there any other definition of the word TAX DEDUCTION?}

Dear Friend,

loss from house property can be claimed even the house it sold.

waiting 4 ur valuable comments plz. amir sir

Dear Shurvo,

Generally, Deduction can be claimed in 2 situations -

1) During the course of Calculating Income - This is allowed from "Receipts"

Further it can exceed "Receipts", & in such case the net result will be "LOSS"

2) During the course of computing Taxable Income (once Income is computed after above deduction) - This is allowed from "Income"

It cannot exceed "Income".

I think what is troubling you is the common word "Deduction" used in both cases..........

Amir bhai, for the preconstruction period,

where it is said that to the extent sec 24 deduction ont allowed, it can be claimed as cost of acquisition?