Income from house property

Pre-construction interest (PCI) is deductible in 5 equal instalments and the pre-construction period starts from the date of borrowing and ending on (a) March 31 immediately prior to the date of completion of construction/date of acquisition OR (b) Date of repayment of loan, whichever is earlier. So (assuming u have not repaid the loan), u can claim PCI from the date of borrowing till Oct 2014 in 5 equal instalments starting from FY 14-15. In addition, u can also claim deduction of interest payable from Nov to Mar 15 without any limit since u have let out the property. U also need to declare rental income from Nov to Mar15.

If the following conditions are satisfied (section 53A of Transfer of Property Act), u shall be the deemed owner (even though property is not registered):

1. there is an agreement between the purchaser and the seller

2. the purchaser has paid the consideration or s/he is ready to pay the consideration (not applicable in case of gift)
3. the purchaser has taken the possession of the property.

If u have only one house property & salary income, then u can use ITR1. Alternatively, u can also use ITR2A.

Dear Poornima,

Thanks for your clarification.

I need one more clarification that the flat was booked on construction linked plan and ttarget='_blank' rel='nofollow' hrefore I have disbursed the loan in seven installments. Is it has any implication?

U mean to say loan was disbused by the lender in different instalments?....If so, thats okay.....u can calculate the interest for the relevant period to arrive at PCI