House property

1) Total pre-construction interest   = 1,46,000 / 5 = 29,200/-

 i.e,,, first loan interest up to 31/3/2010 = 6,00,000 * 12 /100 * 4 /12 = 24,000/- + 72,000/- = 96,000/-

i.e,,, second loan interest up to 31/3/2010 = 5,00,000 * 10 / 100 = 50,000/-

 2) interest on loan for current year = 1,24,000/-

 i.e,,, 72,000/- + 52,000/- )

3) Total interest eligible for deduction u/s 24 = 1,50,000/- for the p.y 2012-13

 Total interest = 1,53,200/- for the year 2012-13 but deduction restricted to maximum rs 1,50,000/-

i assumed that the above House is self occupied property.

1) If you are calculating it for Academics purposes, then the Interst will be as follows:

(a) Pre-Construction Interest : i.e. till 31.03.2010

[(₹ 6,00,000/- * 12% * 16 Months) + (₹5,00,000/- * 10% * 12 Months)] / 5  = ₹ 29,200/-.

(b) Interset for the Current Year (i.e.FY13) =

[(₹6,00,000/- * 12% * 12 Months) + (₹5,00,000/- * 10% * 12 Months)] = ₹1,22,000/-.

Total Interest = ₹1,51,200/- which will be restricted to ₹1,50,000/- if the House Property is Self-Occupied.

2) If you are calculating if for Actual Home Loan availed frm Bank, then the above calculations differe as it takes into account the compounding of Interest as the Bank Charges Interest on Dails Balance Method. In such a case, you need to ask for the certificate on year to year basis and compute it in the similar was as I have done above.

 Note: The Date of Preconstruction Interest will be earlier of the following:

(a) Date of Completion of Construction;

(b) Date of Completion of the Loan; and

(c) Date of the Last Day of the Financial Year in which the Loan was cleared or the Construction was completed.

If you have any further clarification, you can call me between 2000Hrs to 2200Hrs on 9966321132.