INTEREST ON HOME LOAN CAN CLAIM UP TO RS 150000 AS A DEDUCTION IF IT IS DUE BUT NOT PAID TO BANK UP TO 31.3.2013
Dinesh Singh (CA Final Student) (38 Points)
19 December 2012INTEREST ON HOME LOAN CAN CLAIM UP TO RS 150000 AS A DEDUCTION IF IT IS DUE BUT NOT PAID TO BANK UP TO 31.3.2013
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 19 December 2012
The wording of clause b of section 24 reads as follows. Hence interset payable would also be dedcutible even if tis paid in teh subsequent F.Y.
Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:—
b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:
CA Bhargav Nathwani
(CA in Practice)
(8307 Points)
Replied 19 December 2012
Anand
(CA - Assistant General Manager - Taxation)
(1606 Points)
Replied 20 December 2012
Dinesh,
As stated by Giridhar you can claim the amount of interest payable even though not paid. However, in order to claim this amount, the Third Proviso to Section 24(b) states that no deduction is to be made unless the assessee furnishes a certificate, from the person to whom the interest is payable on the capital borrowed....etc etc"
The said person, usually a bank, would in all probability not issue such certificate if the interest has not actually been paid.This may be a technicality in claiming the said deduction
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