Interest on housing loan should taken into account on accrual basis or cash basis in calculation of income from House Property??
shrikant kalyani (CA-Final Student) (60 Points)
07 June 2010Interest on housing loan should taken into account on accrual basis or cash basis in calculation of income from House Property??
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 07 June 2010
Dear Shrikant,
Its on accrual basis only, coz in sec.24 it s specified that deduction shall be given on the amount payable. Had there been an intention to allow the same on cash basis, an explicit condition would have been given (As in the case of Municipal Taxes paid by the owner)
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 07 June 2010
Deduction u/s 24 will be allowed on accrual basis.
CA Mohit Agrawal
(Chartered Accountant)
(371 Points)
Replied 07 June 2010
on accrual basis irrespective of the actual amount paid for interest.
kumar kanakum
(ARTICAL CLARK)
(43 Points)
Replied 08 June 2010
yes the interest on housing loan is allowed deduction on receipt basis
Padmavathi
(Studying C.A-Final)
(132 Points)
Replied 08 June 2010
Yes, interest on housing loan will be allowed on accrual basis.
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8310 Points)
Replied 10 June 2010
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