PLEASE GUIDE..
I purchased an under-construction house property on bank loan and sold off in two years later in under-construction condition..
PLEASE say how to treat the two years pre construction interest on my house property.
It's URGENT!!
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Interest on preconstruction period
Replies (3)
Interest on preconstruction period cannot be claimed as deduction in this case.
Interest can be claimed as deduction only if contruction has completed and till the time you are owner of the property, you can claim deduction.
Purpose of this deduction is to enable people to purchase one residential house for self. Purchase and sale like this constitute a transaction which is not for self residential purpose but seems to be a business transaction.
Thanks Sir..got your point.
So corrrect me if i'm wrong..the profit on sale will fall under STCG w/o considering interest payment.
Secondly, can the interest paid, be shown as expence under any other head.
Pls give ur advice..
I am not sure. But it should be STCG. Interest is not allowed as expense. Please check with some other expert as well.
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