PL me what all deductions are allowed in house property head & in the house is under construction will it be allowed?
CA Mukesh Jain S
(Chartered Accountant in Practice)
(692 Points)
Replied 09 March 2013
CACACA
(na)
(69 Points)
Replied 09 March 2013
is there any maximum amount that can be claimed in those 5 installments?
manoj katara
(Service)
(209 Points)
Replied 09 March 2013
1) 30% of Nav is allowed as deduction under section 24(a)
a) This is flat deduction and is allowed irrespective of the actual expenditure incurred.
b) In case of self occupied property where the annual value is nil, the assessee will not be entitled to deduction of 30%, as the annual value itself is nil.
2) Interest on borrowed capital is allowed as deduction under section 24(b)
a) Interest payable on loans borrowed for the purpose of acquisition, construction, repairs, renewal or reconstruction can be claimed as deduction.
b) Interest payable on a fresh loan taken to repay the original loan raised earlier for the aforesaid purposes is also admissible as a deduction.
c) interest relating to the year of completion of construction can be fully claimed in that year irrespective the date of completion.
d) Interest payable on borrowed capital for the period to the previous year in which the property has been acquired or constructed, can be claimed as deduction over a period of five years in equal instalments commencing from the year of acquisition or completion of construction.
CA.D.RAGAVAN
(CHARTERED ACCOUNTANTS)
(219 Points)
Replied 09 March 2013
No Limit for Deduction of Pre-Construction Period Interest Which shall be claimed in installments
VIKAS.A
(SOMETHING IS BETTER THAN NOTHING)
(1095 Points)
Replied 11 March 2013
IF THE HOUSE IS NOT SELF OCCUPIED THEN YOU CAN CLAIM WHOLE INTEREST AMOUNT NOT RESTRICTING TO 150000.
CA Deepak Rathore
(EXPERT)
(281 Points)
Replied 11 March 2013
no limit in case of let out
but
there is limit in case of self occupied property
total pre-construction+post construction interest cant exceeds Rs 30000/150000 as the case may be
The maximum amount of interest permissible in cases of self-occupied property is Rs.1,50,000 (in respect of funds borrowed on or after 01.04.1999). Interest upto Rs.1,50,000 is deductible if the following conditions are satisfied:
further w.ef from AY 14-15
U/s 80EE govt has provided additional deduction of Rs 100000 for loan of house property provided some condition satisfy i.e loan amount not exceed 25 lakhs, value of property not exceed 40 lakhs
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