A House property acquired through an Authority. The allotment money and installments with interest are to be paid. Whether the interest paid on installments is deductible from the income from House Property like interest on House Loan?
N C GOEL (CA) (47 Points)
27 October 2013A House property acquired through an Authority. The allotment money and installments with interest are to be paid. Whether the interest paid on installments is deductible from the income from House Property like interest on House Loan?
Nikhil Kaushik
(Fellow CA)
(85487 Points)
Replied 27 October 2013
The interest paid till the year before the year in which the construction was completed and the assessee to took its possession, can be claimed under 24b in five equal statements starting from the year in which the construction was completed.
For eg: house was completed in FY 2013-14, then interest paid upto 31 March 2013 can be claimed in five equal instalment starting from AY 2014-15.
However, if the house was ready to move in when you paid allotment money, then interest paid annually can be claimed under 24b straight away.
Thus the point of consideration shall be when the house is ready.
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