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House property

SHUVRO ( (WANT TO LEARN) ) (175 Points)

05 August 2013

in case, possession of house property is obtained after 4 years ............what wud be the limit of admissible current year and pre construction years interest?

will summation of both the interests be limited to 30000

30000 limit wud only be applicable to pre construction interest only and 120000 of current year interest can be claimed?

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Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 05 August 2013

In case of house property,Pre Construction Interest is the interest paid by the assessee till the year of completion of construction and one point to be considered is interest paid in the year in which construction is completed can not be regarded as pre construction interest. so here when the construction is completed is relevant but not when u occupied such property is immaterial.so for eg: if u construct ur house with in 3 years and interest paid is as follows

2007-08 : 15000

2008-09 : 5000

2009-10 : 5000(construction is completed)

in the above case,interest paid in 2007-08 and 2008-09 should be considered as preconstruction interest i.e rs 20000 only

and interest limit for self occupied property i.e 30000 or 150000 as the case may be is for both Interest and Pre construction Interest