Income from house property

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Assessee has availed loan on 1st April 2013 for constructing a house property and is paying interest on the said loan for the year 2013-14.

The Construction will be completed on 1st April 2014, "Is the Assessee eligible to claim deduction of interest paid under section 24 of Income Tax Act, 1961.

Please Help, Thanks in advance

 

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If the HP is letout during completion then the Assessee is eligible for deduction u/s. 24, if the HP not letout then no question arises for TAX & Deduction.......

Money may be borrowed prior to the acquisition or construction of the property. In such a case, interest paid/ payable before the final completion of construction or acquisition of the property will be aggregated and allowed for five successive financial years starting with the year in which the acquisition or construction is completed. This deduction is not allowed if the loan is utilized for repairs, renewal or reconstruction. As per Income tax pre construction period means Interest up to the end of Financial year ,immediate proceeding to the year in which house is completed. Explanation.Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years.


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