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How to save tax... even after paying interest for 2 years?

496 views 1 replies

MANJUNATH SHET

Techlead

24 Points Posted on 09 February 2012

Hi,

I have planned to buy an apartment (30Lakh cost) in Bangalore, which will get over by 2014 June.

As I am not getting OC (Occupancy Certificate) till 2014 june, Is there any way can I save the tax? which I'll be paying for the two year.

I know that, I can use these two years inerest in next five years installment. But which is not useful in my case. As I'll be paying more than that every year.

Info might be useful:

1. To do the downpayment I took loan from my dad for about 6Lakh

(There is a clause in section 24, submitting Certificate of Interest (If we take money from Relative or friends). Can I claim the money which I took from dad. If so how to do?

2. My dad written the our native home in (a village nearer to Delhi) to my name. For a simple settlement of 50,000/- Rupees. There we have one more small house in that premises we are giving it for rent for just 800/- Rupees.

Can anybody suggest me, how can I save the tax during this scenario?

Replies (1)

Alok Siddapur

Consultant

229 Points Posted on 10 February 2012

Head under which interest is allowable as deduction under section 24 is "Income from House Property". In your case the house property will come into existance only when the builder has finished the construction and the house is ready to occupy. If your house is ready to occupy then only you can claim interest deduction under section 24 and deduction under section 80C for principal repayment.

If you want to claim deduction for interest payable to your father, then you have to make sure that interest amount is paid to his account and afterwards you can take that amount in cash So that in case of assessement you can easily prove that you have paid interest.