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House Property

Others 282 views 5 replies
In case construction is started for house on 17th september, 2014 and completed on 31st march, 2018...
For what period, Interest should be capitalized and can be claimed ad deduction for 5 consecutive years??
Up to 31/03/2017 or 31/03/2018??
Replies (5)
From 17th September 2014 to 31st march 2017 . interest should be capitalized
Mr. Dalwadi
you can claim it for 5 years and capitalize the same....
@ Shiv
interest should be capitalized till 31.3.2018 .And it will add up cost of acquisition.

Accumulated interest till 31.3.2018 , you can claim deduction 1/5th every year under 24(2) from FY 2018-2019 to 2022-2023 (for 5 years @ 20%) subject to 24(2) maximum interest deduction and balance you can c/f
I'm confused....Cz I'm getting two kinds of answer...please tell me one proper answer...
because capitalization's rule is 31st march prior to construction
The entire cost of construction is capitalised as per AS 10.
THE COST of THE ASSET.
EXPENSES INCURRED INCIDENTAL TO THD FIXED ASSET ARE BEING ADDED AND CONSIDERED AS COST OF CONSTRUCTION
Now interest claimed exemption is under the purview of Income tax return.
From Sept 2014 to 31st Mar 2017 interest can be claimed as deduction under Sec 24 of the Income tax Act 1961.


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